VeChain (VET) continues to trade around a major support level, but is the bearish sentiment about to turn bullish?
VET/USD: Daily
VeChain, the value transfer token for the VeChain blockchain network, has been down in the dumps with the rest of the crypto space since November, falling from a swing high just under $0.19 to December lows around $0.075 (a -60% drop)!
This area roughly between $0.07 – $0.09 is a major support area that’s been the jump off point for several bull rallies in VET/USD’s past, so it’s arguable that crypto traders are looking at this area once again to for a bullish reversal, especially with a bullish divergence pattern currently playing out on the daily chart above.
So, will we see another swing move to the upside VET/USD? It looks like that might be the case with today’s pop higher of around +10% on the session, likely a reaction to recent news that VeChain will bring its own stablecoin to the VeChain network.
Happy to announce that $VeUSD, #VeChainThor‘s first native #StableCoin, will soon go live!
Users & enterprises will be able to easily create/burn fully backed USD-based stablecoins, opening #VeChain up to #DeFi, #web3 and novel real world use cases.
https://t.co/Nt4yBWJtKc pic.twitter.com/OH7BAa59KK
— VeChain Foundation (@vechainofficial) January 4, 2022
Is this news really enough to get the bulls going? Of course we won’t know until we know, but the narrative of being a fully backed, regulated and audited stablecoin could be enough to draw in both investors and potential users of the network to VET.
And with the chart setup above of a potential stop below recent swing lows and target at previous swing highs, there is a very attractive range of potential reward-to-risk ratios that could draw in smaller players as well for short-term or medium-term swing plays.
All combined, the odds are pretty good that a bullish move is in the cards if broad crypto sentiment does lean positive, and we’ll be watching for a retest of that $0.08 handle before considering a potential long swing position with a great potential return-on-risk.
