With a failed bullish cycle seeking redemption near the 50-day EMA, can VeChain (VET) achieve a breakout?
During the bearish phase, the price of VeChain dropped from $0.051 to $0.019, marking a significant decline of 61.15% between March 3 and September 7. However, following a broader market recovery, VeChain is back in play, challenging its overhead resistance trend line.
Currently, the price has dipped back to the 50-day EMA, maintaining hopes for a breakout. Will the broader market recovery fuel VeChain’s potential breakout?
VeChain Crosses $0.023
On the daily chart, VeChain’s price action indicates a continuing downtrend. This bearish phase began with a rejection near the psychological $0.050 mark, leading to a downturn from $0.051.
This increasing bearish pressure has created both primary and secondary resistance trend lines, resulting in a bearish alignment among the crucial daily EMAs. At present, the 50, 100, and 200-day EMAs exhibit a bearish configuration.
Moreover, changes in underlying dynamics have formed a declining support trend line, completing a falling channel pattern. Based on Fibonacci levels, the recent bullish cycle from $0.0199 tested the overhead resistance trend line close to the 73.60% Fibonacci level at $0.02736.
The 23.60% Fibonacci level, located just below the 200-day EMA, adds to this confluence of resistance. The high selling pressure around these crucial resistance levels caused the recent bullish cycle to falter. Specifically, it resulted in a drop below the 100-day EMA, a 5.56% decline on Monday.
VeChain Breakout Chances
Despite the recent drop, VeChain has managed to maintain its position at the 50-day EMA, experiencing an intraday increase of 2.52%. Currently trading at $0.0249, it has formed a bullish piercing candle.
The possibility of a breakout remains as the altcoin holds above this dynamic support. A bullish rally above the 23.60% Fibonacci level could challenge the primary resistance trend line above $0.030. Conversely, critical support levels for VeChain are positioned at $0.02378 and $0.020.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
