VeChain’s Struggle to Break Out of Descending Channel
VeChain (VET) is currently experiencing an ongoing struggle to break free from a Descending Channel that has formed on its weekly chart over the past 850 plus days. This insight comes from a Twitter post by cryptocurrency analyst EGRAG Crypto. This struggle comes after VET reached its all-time high back in April 2021.
EGRAG Crypto’s Observations on VET’s Trends
“#VET 850 Days Saga – Struggling to Break Free: The #VET has been battling for a remarkable 850 days and still counting, to escape the grips of its Descending Channel, after peaking at an all-time high point in April 2021. The channel’s continuation suggests an ongoing triple bottom pattern…”
EGRAG Crypto goes on to mention an emerging triple bottom pattern forming around 0.015c. This is typically seen as a bullish reversal pattern in technical analysis, indicating reduced selling pressure.
If this bullish pattern proves true, EGRAG Crypto suggests that VET might be able to reach targets of $0.5 or possibly $0.702.
Daily Chart for VET/USDT
(Source: TradingView)
Imminent Breakout Suggested by Symmetrical Triangle Chart Pattern
Noteworthy on VET’s daily chart is the formation of a symmetrical triangle chart pattern, indicative of a forthcoming breakout. Risks are associated with the altcoin’s price breaking below the chart pattern – the subsequent tumble could lead it to the next crucial support level at $0.01070. In contrast, a break above this chart pattern could result in an ascent to $0.02125.
Confirmation of Bullish Thesis
Signs of confirmation of the bullish thesis would manifest if VET closes a daily candle above the immediate major resistance level at $0.01750. However, technical indicators seem to indicate that bears hold the upper hand for short-term and medium-term momentum. For instance, the 9-day EMA line was reported to be below the 20-day EMA line. Additionally, both of these technical indicators were positioned bearishly below the 50-day EMA line.
Higher Lows – Potential Recovery Indication
Interestingly, traders and investors may observe that VET’s price had consistently printed higher lows over the past few days. This could possibly be an early sign of the altcoin’s price rebounding in the approaching week, potentially leading to it flipping the $0.01750 resistance into support.
VET’s Current Value
Currently, VET is valued at $0.01606 with a 0.93% rise in price over the preceding day of trading. However, according to CoinMarketCap, VET’s weekly performance still indicates a more than 10% fall.
Disclaimer: The information shared in this price analysis is provided with the best intentions and in good faith. Readers are encouraged to carry out personal research and due diligence. Any action taken by the reader is strictly of their own volition. Coin Edition and its affiliates are not liable for any direct or indirect losses or damages.
