VeChain VET price mounted a tremendous rebound yesterday, but collective weakness in the cryptocurrency market may lead to some residual selling in VeChain over the next couple of days. However, the channel’s upper trend line should contain the selling.

VeChain price to retake relative strength leadership

VeChain advanced in a rising channel from late November 2020 until mid-February before going parabolic earlier this month. The collective sell-off in the market halted the advance, sending the VET price lower.

The price decline culminated in yesterday’s massive VET bullish hammer candlestick pattern level. The low of the day nearly touched the 61.8% Fibonacci retracement of the cup-with-handle pattern level breakout on January 3 and was built on the fourth largest daily trade volume in 2021, raising the odds it was the end of the 50% implosion.

Most major sell-offs experience some residual selling after VeChain price rebounding, and it is anticipated over the next couple of days. A VET trade above yesterday’s high at $0.214 will confirm a new VeChain price rally that should carry it to the all-time high of $0.282. Along the way, the digital token will confront some resistance at price of $0.220 and $0.253.

One caveat to the VeChain bullish thesis is the current high readings on the daily and weekly RSI. Flash-like declines never release the overbought conditions that often suffocate sustainable upward rallies, so a bearish momentum divergence can be anticipated when the VeChain price reaches new highs.

For the thesis to be invalidated, it would require complete retracement support of yesterday’s rebound, which is highly unlikely considering the daily price chart framework.

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