VeChain 1d chart - still on Low VolumeVeChain Update:
VeChain is still in its massive Symmetrical Triangle Pattern as indicated by the converging ascending and descending dotted trend-lines.
At the moment, VeChain is trying to stay above its Bollinger Bands Middle Band Basis 20 Period SMA. VeChain need to close this daily candle above the BB Basis. Note that Lower Band is moving upwards and the Upper band is moving sideways.
VeChain is still below its least Squares Moving Average (LSMA) for this 1d timeframe. If you are waiting to go long using this indicator then wait until a daily candle closes back above the LSMA level.
Note that VeChain is still in the Bearish Zone of the Ichimoku Cloud.
At the moment, VeChain is above its Volume Profile Fixed Range Point of Control (VPFR POC) for the Fixed Range of 6x daily candles that i have selected.
At the moment, VeChain is below its Volume Profile Visible Range Point of Control (VPVR POC) for this charts Visible Range.
Note Volume is still very ow on this Binance 1d chart, and note that the last 6x daily Volume Bars have been way below its Volume 20 period MA. We need to see rises on increasing volume for any upwards momentum to be sustained.
I have added some key support and resistance areas indicated by the Black Horizontal Parallel Lines with Orange Shading. I have also added some key support and resistance lines and indicated by the various dashed, solid and dotted lines.
If we look at the Average Directional Index (ADX DI) we can see that Negative Momentum has dropped with the -DI (Red Line) dropping to 19.45. Positive Momentum has also dropped with the +DI (Green Line) dropping to 16.09. Note that the Trend Strength has weakened with the ADX (Orange Line) dropping to 25.24 and is still below its 9 Period EMA (Black Line) which is at 30.19. For any upwards momentum to be sustained, we need the ADX (Orange Line) to stay above the 20 Threshold (Black Dashed Line) and we 100% need the +DI (Green Line) to cross back above the -DI (Red Line) on this 1d timeframe.
If we take a look at the Stochastic Indicator (STOCH) we can see that momentum is downwards at the moment. Note that the %K (Blue Line) is fighting to stay above its %D (Orange Line). The %K (Blue Line) needs to stay above the %D (Orange Line) for continued upwards momentum. If the %K (Blue Line) drops and stays below the %D (Orange Line) then we will see further drops on this 1d timeframe.
Here is a wider look at this 1d chart, you can clearly see the difference in Volume that VeChain has now compared to what VeChain has experienced in the past. At the moment Volume is very, very low.
So what does all this mean to me? I would be very suspicious of any rise happening on really low volume. For me, I wouldn’t get excited by any rise unless its on increasing Volume. As always, we need to keep an eye on what BTC is doing as Bitcoin is still in a H&S Pattern.
Be on the lookout for a successful break above the LSMA indicator level and any successful re-test as support as well as the +DI (Green Line) crossing back above the -DI (Red Line) on the ADX DI indicator on this 1d timeframe.
I hope you’ve found it helpful with your trading and hodl-ing.
