VET Technical Analysis Jan 20

Downtrend structure is solid; recent LH/LL patterns continue, but $0.0095 support is critical – watch for $0.0103 breakout for CHoCH.

Market Structure Overview

VET’s current market structure exhibits a clear downtrend characteristic. The current price is positioned at $0.01, with a 6.47% decline observed in the last 24 hours. The price range is narrow ($0.01 – $0.01) and volatility is low, which may indicate consolidation or accumulation phase. However, the overall structure shows downward dominance with lower highs (LH) and lower lows (LL) patterns. Supertrend signal is bearish and resistance is positioned at $0.01. Trading below EMA20 ($0.01) reinforces the short-term bearish structure. RSI at 35.55 is approaching oversold territory, while MACD’s negative histogram confirms downward momentum. In multi-timeframe (MTF) analysis, 5 strong levels were identified on 1D, 3D, and 1W charts: 3 supports/1 resistance on 1D, balanced (1S/1R) on 3D and 1W. This indicates the structure is fragile but remains downward biased. Market structure analysis reminds that trends are defined as upward with HH/HL (higher highs/higher lows), downward with LH/LL: VET is currently stuck in LH/LL.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend, HH/HL pattern formation is required; that is, consecutive higher highs and higher lows. No such structure has been observed in VET recently. The last swing low was tested at $0.0101 but no new higher low formed. As long as price remains below EMA20, bullish momentum stays weak. Potential bullish continuation target $0.0161 (score:31/100), but this level requires a BOS (break of structure) breakout above $0.0103 resistance first. RSI’s tendency to bottom at 35.55 offers hope for a short-term bounce, but it’s not strong enough to change the overall trend structure. Educational note: HH/HL indicates buyers taking control; this is not yet present in VET.

Downtrend Risk

Downtrend is clear with LH/LL: Last swing high rejected at $0.0103 and new lower lows advancing toward $0.0095. If $0.0101 swing low breaks, LL confirmation follows. Bearish breakdown target $0.0051 (score:22/100). MACD is bearish and Supertrend resistance at $0.01 is applying pressure. In MTF, LH/LL continues on 1W, increasing long-term risk. In LH/LL pattern, each new low traps buyers and strengthens seller dominance. Current $0.01 price is balanced around the last LH but downside breakout is risky.

Structure Break (BOS) Levels

BOS is the key to trend change: In downtrend, bullish BOS comes with a close above the last swing high ($0.0103, score:60/100) and triggers CHoCH (change of character). This breakout initiates HL formation and opens the path to $0.0161. Conversely, bearish BOS requires a close below $0.0095 support (score:73/100); this leads to new LL confirmation and path to $0.0051. Secondary levels: $0.0101 (67/100) and $0.0090 (67/100) supports. Without BOS, trend remains intact. Education: BOS invalidates structure by breaking swing point; for VET, above $0.0103 is bullish shift, below is bearish continuation.

Swing Points and Their Importance

Recent Swing Highs

The most critical swing high $0.0103 (score:60/100) represents the last LH. This level is buyers’ final resistance; if broken, it can turn into HH. Previous swing highs also support LH pattern: Price gets rejected every time it approaches here, showing seller pressure. This point is a target for short positions, invalidation level for longs. Swing highs are where trend reversals begin; for VET, BOS at $0.0103 is awaited.

Recent Swing Lows

Recent swing lows: $0.0095 (73/100) main support, $0.0101 (67/100) and $0.0090 (67/100). These indicate LLs. If $0.0095 holds, consolidation; if broken, bearish acceleration. Swing lows are support tests; scores are high, so strong. Education: LLs are the fuel of downtrend, each break increases momentum. Watch: BOS below $0.0095.

Bitcoin Correlation

Altcoins like VET are highly correlated with BTC; BTC in downtrend at $89,857 (3.52% decline), Supertrend bearish. BTC supports $88,335 / $86,637 / $85,058; if it drops to these, VET’s LH/LL accelerates. Resistances $90,944 / $92,983 / $98,378; BTC bounce brings relief to VET but overall dominance cautions alts. If BTC breaks $88,335, VET tests $0.0095. Correlation: If BTC makes LL, VET follows; alt rally without BOS stays weak.

Structural Outlook and Expectations

VET structure is bearish: LH/LL intact, consolidation at $0.01. Trend down, BOS levels decisive. Bullish for CHoCH above $0.0103, bearish below $0.0095. MTF supported, BTC caution. Structure education: Long risky without HH/HL, LL break is short opportunity. Be patient, watch levels. (Word count: 1056)