VeChain (VET) has been one of the standout performers in the cryptocurrency market lately. With a market capitalization of $2.36 billion, VeChain has seen a significant 13.27% increase in the past 24 hours. This surge in price has been accompanied by a substantial rise in trading volume, which has spiked to $130 million, marking a 42% rise over the same period. As the broader crypto market continues its bullish trajectory, VeChain is positioned for potential explosive growth. Let’s delve into its price action and what might come next for this blockchain-based supply chain platform.
VeChain Eyes Trendline Breakout
On the daily chart, VeChain has exhibited a strong V-shaped recovery, surging 50% over the last 7 days alone. This rally has been marked by consecutive bullish candles, pushing the price above the critical 200-day Exponential Moving Average (EMA), signaling the potential for further upward momentum.
One of the key technical indicators showing this bullish sentiment is the break above the 38.20% Fibonacci level at $0.02795. Currently trading at $0.02901, VeChain has gained 1.75% from the opening price of $0.02845 in just one day. This is a positive sign that buying pressure is mounting, and investors are gaining confidence in the asset’s future performance.
Adding to the optimism, VeChain’s recent price action has also seen a breakout from a falling wedge pattern, suggesting that the uptrend is gaining strength. This pattern break, combined with increased buying pressure, has positioned VeChain for a possible test of the 50% Fibonacci level at $0.03140, a critical resistance point in the short term.
Technical Indicators Favor Continued Upward Momentum
In addition to the price action, VeChain’s technical indicators are also showing signs of bullishness. The 50-day, 100-day, and 200-day EMAs have all been trending upwards, increasing the likelihood of positive crossovers and reinforcing the bullish alignment. These crossovers suggest that the price could continue to rise, potentially leading to further gains.
Moreover, the MACD (Moving Average Convergence Divergence) indicator has generated a bullish crossover, with the signal line crossing above the MACD line. This is supported by an increase in positive histogram bars, signaling a shift in market sentiment towards the upside.
Will VeChain Cross $0.050?
As the bullish trend continues, the next key resistance level for VeChain lies at the 50% Fibonacci level around $0.03140. A successful breakout above this level could pave the way for a further rally toward the 78.60% Fibonacci retracement level at $0.04161. From there, the asset could potentially target its 52-week high of $0.05499, which sits just above the 100% Fibonacci level at $0.05137.
Should the broader crypto market maintain its bullish momentum, VeChain could even reach the 1.272 Fibonacci extension at $0.06714, implying an upside potential of around 131% from current levels.
With strong technical indicators, increased buying pressure, and a market that’s generally bullish, VeChain (VET) looks set for a continued upward movement. Traders and investors will be closely watching the $0.03140 resistance level, as a successful breakout could open the door to even higher targets. If the current trend persists, VeChain could be on track to surpass $0.050, making it one of the most promising assets in the cryptocurrency space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
