Velas ( VLXUSDT ) has been trading within a Channel Down since late January, as I mentioned on the most recent analysis. Right now the price is at the bottom of the Channel, potentially forming a Lower Low. The Lower Lows legs share similar 4H MACD structures and once the 4H MA100 (red trend-line) breaks, the short-term target should be within the 0.618 (0.2430) and 0.786 (0.2627) Fibonacci retracement levels.

The chart on the right is on the 1W time-frame where we clear see the importance of the 1D MA100 (green trend-line). It was the long-term Support when Velas started rising on the August 30 2021 1W candle. The correction started when it broke downwards and it has been the Resistance since January 21 2022. When it breaks to the upside (which may coincide with the 1W RSI breaking above its MA (yellow line)), there are high chances to see it turn into the Support again for a new long-term rise. The last High of November 2021 stopped just below the 0.618 Fibonacci retracement level. Technically that should be the medium-term target when the next rally starts, with the long-term being the 0.786 Fib around $1.71.

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