VVV crypto falls 25% – Could Venice Token’s buy zone be near $20?

Venice Token [VVV] slid to a low of $25.90 on the 29th of September, marking a 25% drop from its record peak of $34.60. Although the altcoin flashed a reversal sign (an incomplete hammer candlestick), an extra price decline and discount couldn’t be overruled.

Should VVV crypto bulls wait a little longer?

Following Bitcoin’s [BTC] cue and subsequent drop from $87K to $82K, the VVV crypto also faced a similar sell-off. The VVV crypto tripled in Q3, rising from $10 to $35, a whopping +230% gain between July lows and September peak.

Although the brief Bitcoin pullback triggered VVV holders to book profit, the selling may be far from over. First, the broader market may remain range-bound ahead of the Fed rate decision in late October. If so, altcoins that have exploded in Q3, including VVV, may see more profit-taking. 

On this macro backdrop, the recent 20% drop seems incomplete. The pullback has not touched the typical golden zone and reversal level at the 50%-61.8% Fibonacci level ($20-$22). In other words, an extended decline could still be possible towards this support level. 

The level was also a confluence of the 200-day Moving Average (MA) and the Fibonacci golden zone, further reinforcing it as a crucial support zone.