VeChain has formed a pattern that is bullish with an 89% potential upside. VET is aiming for a big breakout rally, if the price regains its neckline of $0.032.
VeChain’s decline is nearly 10%, as other altcoins battle to stay afloat amid Bitcoin dropping below $103,000. The price of VET is struggling to stay above the psychologically important level $0.030. This represents a temporary pause in the breakout rally.
Will the recent pullback reverse itself and move towards $0.050? VeChain Has a strong potential for growth?
VeChain Price Analysis
VeChain surged 27% during the week of last year as the overall market rebounded. On the daily chart the movement confirmed the break-out of a pattern that resembles a falling channel, which indicates a new bullish trend.
The trend retreated briefly from the 200-day EMA, testing the Fibonacci threshold of 38.20% near $0.032. VET’s price has fallen to $0.029 due to increased selling at higher levels. This intraday drop was 4.65%.
A positive crossover of the 50 to 100 EMA is expected due to the recent surge in bullish sentiment.
The MACD signal and MACD line are both indicating a crossover that is not positive. The technical indicators are therefore in opposition to the VeChain trend.
The Inverted Head and Shoulders Pattern is in play
VeChain is forming a head-and shoulders pattern with an inverted neckline of $0.032. VeChain could soar if the price challenges the neckline and rebounds off the Fibonacci 23.60% level.
VET Price Targets
VeChain is expected to rally 89% in order to reach the $061 mark. Fibonacci Extensions show that the move will surpass the level of 78.60% at $0.058. This would indicate a strong upward potential.
If VET does not hold the Fibonacci 23.60% level of $0.026, then the bullish pattern is invalidated. It would then increase the probability of a drop towards the support level $0.023.
DisClamier: Informational content only. This is not financial advice. The opinions expressed by the author in this article are their own and not The Crypto Basic’s. The readers are encouraged to conduct thorough research prior to making investment decisions. Crypto Basic does not accept any responsibility for financial losses.
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Source: thecryptobasic.com
