VET price reclaims $0.030 and signals a potential breakout rally to the $0.060 level. Derivatives data shows a bullish bias, with a 5.75% rise in open interest.
As top coins rally, boosting the total crypto market capitalization to $3.44 trillion, VeChain records a massive surge of 8.58%, surpassing the 200-day EMA. With this bullish comeback, VeChain hints at a potential inverted head-and-shoulders pattern, targeting a surge above $0.060.
VeChain Price Analysis
On the daily chart, VeChain’s price action showcases a bullish inverted head-and-shoulders pattern, with the neckline near $0.0327. This key resistance level coincides with the 23.60% Fibonacci level.
VeChain forms its third consecutive bullish candle following the 200-day EMA breakout. Currently, the VET token trades at $0.030, reclaiming this psychological level.
As the uptrend gains momentum, the daily RSI line bounces off the halfway mark and surpasses the 14-day SMA.
With the RSI line pointing higher, the distance from the overbought zone indicates significant room for growth in VeChain. Additionally, the 200-day EMA breakout increases the likelihood of an uptrend in the 50- and 100-day EMA lines, potentially leading to a positive crossover.
According to Fibonacci levels, a potential pattern breakout will likely surpass the 61.80% Fibonacci level at $0.055. This estimate is derived by adding the pattern’s depth to the breakout point, suggesting an 88% rally to $0.061.
On the flip side, if the altcoin fails to break above the 23.60% Fibonacci level, a potential retest of the 50-day EMA at $0.027 could occur.
VET Derivatives Supports Bullish Bias
Amid the sudden surge in bullish pressure, the VeChain derivatives market witnesses a significant boost. Open interest has surged by 5.75%, reaching $86.47 million. Notably, the funding rate remains steady at around 0.010%, signaling consistent bullish intent.
Surprisingly, the recent price surge has increased optimism among Binance traders betting on VeChain. According to CoinGlass data, 64% of Binance accounts trading VET-USDT perpetual contracts are bullish on the altcoin.
This reflects a long-to-short ratio of 1.82 based on the accounts. With this overall bullish bias, a potential leverage-driven rally for VeChain is possible.
However, traders should remain cautious, as 35% of short positions could command greater capital, which might undermine the long bias.
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.
