- VeChain bulls are focusing on the recent ascending triangle breakout.
- Short-term technical signals like the MACD cross reinforced the bullish narrative.
- Closing the under $0.05 and, by extension, the 100 SMA on the 4-hour chart would lead to a spike in selling pressure.
VeChain is nurturing an uptrend after the key technical breakout. Recovery has been gradual but consistent since support was established at $0.036. Several resistance levels have been pushed into the rearview as VET eyes new record highs.
VeChain bulls push for a 39% upswing to new all-time highs
VeChain consolidated within the confines of a descending wedge pattern followed the dip from the record high of $0.61. Although this particular triangle pattern is usually bearish, VET bulls managed to pull a breakout above the hypotenuse.
The ascending triangle pattern comes into the picture when the asset consolidates above horizontal support (x-axis). On the other hand, the price prints a lower high pattern illustrated using a descending trendline.
Following the break above the hypotenuse, VeChain hit a snag at $0.055. At the time of writing, the token is exchanging hands at $0.051, while bulls push to complete the more than 39% breakout target to $0.064.
VET/USD 4-hour chart
The Moving Average Convergence Divergence (MACD) has remained steadfast in the recovery from the negative region. Besides, the MACD cross above the signal reveals that buyers have the upper hand. If this trend momentum indicator remains bullish, investors will be encouraged to leave the sidelines and buy-in for gains above $0.06.
Looking at the other side of the fence
As mentioned above, VET faces some challenges in the breakout to $0.064. Particularly the selling pressure at $0.055. On the downside, immediate support at $0.05 helps to keep the bears in check.
If push comes to shove and the bearish leg extends under the short-term support, it will trigger selling orders. Another critical support that must be guarded at all costs is the 100 Simple Moving Average (SMA) on the same 4-hour chart. Losing this support will be a big blow to the progress made in the last couple of weeks and might lead to a $0.04 and $0.036 support area being tested.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.