Will VeChain reclaim the $0.050 psychological mark as bulls prepare for a falling wedge breakout rally?
The crypto market is witnessing and anticipating a potential bullish recovery in the altcoin market as Bitcoin crosses above the $87,000 mark. Among the rapidly rising altcoins, VeChain has experienced a significant surge of nearly 5% over the past 24 hours.
Currently, the VET token is trading at a market price of $0.02647 with a market cap of $2.27 billion. With this short-term recovery, the altcoin shows signs of a potential falling wedge breakout rally on the daily chart. Could this lead to a 2x rally for VeChain?
VeChain Price Analysis
On the daily chart, the VET token’s price trend shows a significant bearish influence. Since early December 2024, the token has dropped from $0.080 to $0.01873.
This represents a nearly 75% decline over the past three months. During this downtrend, VeChain has formed a falling wedge pattern, characterized by the narrowing of price movements. This pattern indicates a buildup of momentum despite the ongoing bearish trend.
With an intraday recovery of 4.99%, VET is currently trading at $0.027, creating a bullish engulfing candle that challenges the overhead resistance trendline.
While the sudden surge in demand hints at a potential pattern breakout, the sideways movement of the contracting Bollinger Bands suggests minor consolidation. However, the momentum indicator supports the possibility of a trend reversal.
The DMI indicator shows a high likelihood of a positive crossover between the +DI and -DI lines. However, the declining ADX line signals that the trend momentum is still weakening.
VET Price Targets
Based on Fibonacci levels, a falling wedge breakout rally could push the price toward the 78.60% level at $0.03177. This crucial resistance is slightly above the $0.030 psychological mark and near the upper Bollinger Band at $0.02898.
Optimistically, with a broader market recovery, the altcoin could reach the 50% Fibonacci level, which is close to the psychological mark of $0.050.
On the downside, the key support levels are the lower Bollinger Band at $0.02254, followed by the psychological support at $0.020.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
