VeChain Analysis – They do not have mercy

Let me show You the situation on the VeChain, so for us it is long time, no see with an old friend. Previously, we mentioned this instrument on the 20th of July, when the price was around 1.6 USD. Back in that day we were on the long-term lows but we were still expecting a further decline. This is how we concluded our previous piece:

„Despite the huge drop, the price moved very technically. Before hitting new bottom, the price created two trend continuation patterns and both of them were flags. We also respect the down trendline (green).Sentiment is still negative and most probably, we will keep seeing new lows.„

What happened after this, not many people could have predicted. The price dropped like a rock, fair enough, we were expecting that but in the same time, the scale of that drop was absolutely enormous. Just to say that currently, the price is on the 0.004 USD. Wow, do you feel that burn? Anyway, the instrument is poised for a further decline. Most recently, the price bounced from the orange resistance area (slightly below the 0.006USD) creating candles with long heads. That is usually a negative sign and VeChain should show us new long-term lows pretty soon. We think that traders should rather stay away from this instrument.