Key Takeaways
Vine Coin has consolidated losses above $0.05 for the past few days. Is it the springboard for a recovery?
Vine Coin [VINE] has stabilized above $0.05 after heavy profit-taking in August that erased the entire +300% upswing in July.
In the past few days, the altcoin has consolidated between $0.5 and $0.10, forming a base that could front a recovery in case of a positive market sentiment.
Is a rebound on the cards?
Source: VINE/USDT, TradingView
On the price charts, the price bounced off the trendline support after the 60% dump in August, marking the level as a key demand zone.
This was above $0.05 price level and could support the recovery thesis if the trendline is defended.
However, bulls had to clear the $0.08 to advance to the next crucial target at the 50% Fib level at $0.01.
A potential 40% gain could be possible if bulls could manage to clear the overhead hurdle at $0.08 and march to $0.01.
The above move could be confirmed if trading volume cracks the resistance (white trendline) on the OBV. Otherwise, the VINE could continue to consolidate losses above $0.05.
A break below $0.05 and the trendline support would invalidate the bullish thesis.
That being said, the liquidation heatmap also marked out $0.08 as a key level that could set the pace for recovery.
The zone (marked yellow) had significant short liquidations that could attract price action. A short-squeeze at the level could push VINE higher under positive market conditions.
Source: CoinGlass
Overall, after a 300% explosive upswing in late July, VINE erased nearly all its gains in August.
But there appeared to be seller exhaustion, and the altcoin was consolidating losses above $0.05. This could set up the stage for a strong VINE rebound towards $0.1, especially if buyers step in.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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