VeChain’s Recent Price Surge Sparks Investor Interest
In the past week, VeChain (VET) has seen an impressive 27% increase in its value, capturing the attention of investors who are now speculating on the possibility of a significant breakout in the near future.
Despite facing a decline in market share due to previous price drops, VeChain has shown signs of recovery in the current bullish market. There is optimism surrounding the potential for a double breakout for VET.
Will VeChain Experience Another Breakout?
VeChain demonstrated remarkable growth last week with a notable 27% surge in its value. Recent market trends have further piqued investors’ interest, following a more than 9% price increase in the last 24 hours. As of the latest data, VET is trading at $0.03267.
An interesting observation was made by World Of Charts, a well-known crypto analyst, who highlighted VET’s breakout from a falling wedge pattern. This breakout has propelled the token towards both horizontal and diagonal resistances within a multi-year pattern that emerged in 2020.
If VET successfully breaks through these resistance levels, it could trigger a significant rally in the upcoming altcoin season. There is a possibility that VET might revisit its 2024 high by the end of the year if the current momentum continues.
Challenges Ahead for VeChain
Despite the positive outlook, there are some bearish signals that investors should consider. VET’s trading volume dropped by 44% in the last 24 hours, suggesting a potential shift in the prevailing price trend.
Although VeChain’s Open Interest (OI) surged, reflecting growing investor confidence, a sharp increase in this metric may not be sustainable, leading to a possible decline in the coming days.
Moreover, VeChain’s fear and greed index currently indicates “extreme greed,” a signal that usually precedes a price correction in the market. Additionally, the Relative Strength Index (RSI) is approaching the overbought territory, which could prompt some investors to sell off their holdings.
A pullback within the $0.028-$0.026 range would not be unexpected given these indicators. However, the market shows a bullish trend according to the MA Cross indicators, with the 9-day Moving Average positioned significantly above the 21-day Moving Average, suggesting a potential upward movement for VET.