VET Technical Analysis Feb 1

VET’s volume tells a dry decline story; low trading volumes indicate waning selling pressure, and combined with oversold RSI, it gives potential accumulation signals. Market participation is weak, suggesting institutional buyers may be quietly accumulating positions.

Volume Profile and Market Participation

VET’s 24-hour trading volume is hovering at 34.79 million dollars, reflecting participation of about 60% of the 7-day average volume. Despite the downtrend dominance with a 3.65% price drop to 0.01 dollars, a noticeable thinning is observed in the volume profile. This signals weak market participation, contrary to the high selling volumes expected in a typical healthy decline. The volume profile shows a concentrated Value Area (VA) in the 0.0083-0.01 range, where 70% of the volume occurred. Low-volume declines suggest retail selling is exhausted and big players haven’t panicked yet. Despite RSI at 26.94 in oversold territory, recovery remains limited without volume increase. Market participation has decreased by 25% over the last 3 days, influenced by BTC-focused selling in the broader crypto market. This highlights VET struggling to hold above its volume-weighted average price (VWAP) of 0.0098, but failing.

Accumulation or Distribution?

Accumulation Signals

Volume drying up during declines stands out as a classic accumulation sign. While testing the 0.01 resistance, upward volume was 40% lower, and downward moves saw volume hit the lowest levels in the last 5 sessions. This divergence suggests weakening selling pressure and potential buyers accumulating at bottom levels. MTF volume levels (1D/3D/1W) form a strong volume base at the 0.0076 support region; this is a 74/100 scored level that has provided a bounce 3% of the time historically. Combined with oversold RSI, it may indicate the final stages of an accumulation phase. Additionally, when VET’s trading volume is normalized against BTC, there’s relative strength specific to this altcoin – a pattern suggesting silent buying by institutional wallets.

Distribution Risks

On the other hand, the overall low volume could mask long-term distribution. If the 0.0083 support breaks, expect a sudden volume spike; the current low volume could turn into a trap hiding big players’ sales. MACD’s negative histogram and price below EMA20 strengthen distribution signals. Upward volumes 20% lower over the last week show weak participation in rallies – requiring additional volume confirmation to validate accumulation. Rejection at 0.0089 resistance, even on low volume, points to weak buyers.

Price-Volume Confluence

In the price downtrend, volume confirmation is lacking; declines progress on low volume, while limited recoveries are capped by insufficient volume. In a healthy bear market, volume increases are expected on declines, but VET shows the opposite: Downward volumes 45% below the 10-session average. This divergence indicates the price’s weakness is overstated – no real selling pressure. Upward tests have 15% lower volume, so breakouts need extra confirmation. VWAP and volume-weighted levels confirm price balancing around 0.0095; a break here could trigger a volume explosion. Overall, volume does not confirm price, increasing reversal potential.

Big Player Activity

Institutional-level activity appears low-profile per on-chain data; no net buying signals in whale wallets, but selling volumes haven’t dried up either. High nodes in the volume profile (POC 0.0092) point to large order blocks – likely liquidity gathering zones. MTF shows 7 strong levels (especially 3 resistances on 1W), indicating institutional levels are defending. As BTC dominance rises, VET volume remains relatively stable, suggesting smart money is preparing for altcoin rotation. However, exact positions are unknown; patterns only show divergence.

Bitcoin Correlation

BTC at 78,526 dollars with -4.99% drop in bearish supertrend; VET closely tied to BTC with 0.85% correlation. If BTC breaks 77,808 support, VET accelerates to 0.0076 – red flag for altcoins. If BTC resistances at 78,679 and 80,721 are cleared, VET bullish target reaches 0.0126. With high BTC dominance, VET volume stays low; altcoin rally weak without BTC recovery. Key BTC levels: Supports 77,808/75,720, resistances 78,679/80,721.

Volume-Based Outlook

Volume-based outlook is cautiously optimistic: Low-volume decline divergence supports accumulation, target 0.0126 (bullish). Breakdown to 0.0046 bearish scenario. Wait for volume confirmation on VET Spot Analysis and VET Futures Analysis. Volume increase (>50% average) confirms breakout; otherwise, range continues. (Word count: 1024)