VeChain is forming a bullish pattern with a potential 89% upside. The VET price is eyeing a major breakout rally if it reclaims the $0.032 neckline.
As altcoins struggle amid Bitcoin’s drop below $103,000, VeChain has declined nearly 10%. This marks a short-term pause in VET’s breakout rally, with the price struggling to hold above the key psychological level of $0.030.
Can the short-term pullback reverse and rally toward $0.050, as VeChain shows strong underlying potential?
VeChain Price Analysis
VeChain jumped 27% last week as the broader market recovered. In the daily chart, the move confirmed the breakout of a falling channel pattern, indicating a renewed bullish trend.
The uptrend surpassed the 200-day EMA momentarily to test the 38.20% Fibonacci level near $0.032. However, the increased selling pressure at higher levels has led to a pullback in VET price to $0.029, with an intraday pullback of 4.65%.
At present, the altcoin holds above the 100-day EMA, and the short-term surge in bullish influence teases a positive crossover between the 50 and 100 EMA lines.
However, the bearish reversal from the 38.20% Fibonacci level warns of a negative crossover between the MACD and signal lines. Hence, the technical indicators maintain a contrary viewpoint on the VeChain price trend.
Inverted Head-and-Shoulders Pattern in Play
Looking at the long-term price action, VeChain appears to be forming an inverted head-and-shoulders pattern, with the neckline at $0.032. If the price rebounds from the 23.60% Fibonacci level and challenges the neckline, a breakout could send VeChain soaring.
VET Price Targets
According to the pattern, VeChain could rally by 89%, targeting the $0.061 level. Based on Fibonacci extensions, this move would surpass the 78.60% retracement level at $0.058, highlighting strong upside potential with the current shift in momentum.
On the downside, if VET fails to hold above the 23.60% Fibonacci level at $0.026, the bullish pattern will be invalidated. This would increase the likelihood of a pullback toward the $0.023 support level.
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