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The entire cryptocurrency market has been facing severe bearishness over the past few weeks. The king of altcoins, Ethereum broke down below crucial support levels and would incur selling pressures from all around. That effect would automatically trickle down to the other smaller altcoins in the market like VeChain.
However, thanks to its recent rally, Solana seemed to be in a relatively better place to continue its upward trajectory if market sentiments improve.
Ever since the correction that happened on El Salvador’s Bitcoin Day ETH/USD has been trading in a very narrow range between $3100 to $3500. It had briefly broken out of the range, only to fall back down into it, before correcting even more.
This was a concerning signal because it broke down (white arrow) below the chart’s descending triangle pattern, which is depicted by the pink lines. Ethereum prices also fell below the next support level, depicted by the yellow trend line, of $2990. So, unless prices can rally back from current levels to the $4000-$4400 range, the short term outlook for this counter remains bleak.
The Relative Strength Index fell below 40, adding to the selling pressure in this currency pair. The MACD, which had a bearish crossover a few weeks ago, has also entered negative territory.
Solana has been one of the best performing coins over the last month and a half, propelling it to the seventh largest coin by market capitalisation. It has rallied nearly five times in price since mid-August 2021 (blue channel), before correcting sharply a month later in line with the overall market, and that correction has turned into a bearish trend ever since.
Because of the recent rally’s nature, the only logical level of support for prices would be near $20. However, if Solana prices can break out of the white channel and rise above $160, the earlier rally may resume.
Despite the recent major correction from $200 to current prices, indicators had turned extremely bearish. The Relative Strength Index remained near 50, indicating that there was still some optimism.
The MACD, which experienced a bearish crossover, remained well within the positive range as well. Prices did, however, fall below the 20-day Moving Average (green), but retesting those levels isn’t far away. As a result, overall bullish sentiment in this coin persisted.
The VET/USD currency pair was extremely volatile and fell significantly from its all time highs. Since then it was trading within a very wide range however, a promising chart pattern was beginning to emerge for this particular coin.
A bullish cup and handle pattern was seen (white lines) and a breakout over $0.12-$0.16 can result in a major rally. The level of support for VeChain was around $0.06 and that should hold fine based on historical data.
The indicators, however, did not show as much enthusiasm on the bullish side. The Relative Strength Index reached 30 levels and is now hovering around 37, indicating that it is very weak. The MACD, too, broke through the zero line and entered negative territory.
Prices also fell below the 20-day Moving Average (green) over two weeks ago and have yet to break out of it. Overall, this coin, like many others in the market, has been subjected to extreme bearishness and would require a convincing breakout above $0.16 to be bullish again.