VeChain (VET) has experienced a significant decrease in market share due to declining prices in recent months. However, the current bullish market trend has allowed for a slight recovery, although there is still a considerable distance to cover.
Excitingly, there are indications suggesting a potential double breakout for the token.
Possibility of VeChain Breaking Out Again
VeChain saw impressive growth last week with a price surge of more than 27%. The past 24 hours have also drawn attention from investors, witnessing a price increase of over 9%.
As of the latest update, VET is being traded at $0.03267.
Notably, a renowned crypto analyst, World Of Charts, recently highlighted that VET broke out of a falling wedge pattern, paving the way for significant growth in recent days.
This surge has propelled the token towards a horizontal and diagonal resistance level within a multi-year pattern. The triangle pattern emerged in 2020, with VeChain consolidating within it since then.
A breakout above this level could potentially trigger a substantial rally in the upcoming altcoin season. It wouldn’t be surprising to witness VET retesting its 2024 high by the end of the year if all goes as anticipated.
Challenges Ahead
While the outlook appears optimistic, there are certain bearish metrics that might delay the breakout. One concerning factor is the 44% drop in VET’s trading volume in the last 24 hours despite the price surge.
A decrease in trading volume suggests a possible shift in the current price trend.
VeChain’s Open Interest (OI) has seen a significant increase, reflecting investors’ confidence. However, such a rapid growth in this metric could lead to a loss of momentum and a decline in the days ahead.
Currently, VeChain’s fear and greed index show extreme greed, typically signaling an imminent price correction.
Moreover, the Relative Strength Index (RSI) of the token is on the verge of entering the overbought territory, which might influence market sentiment and prompt selling by investors.
Considering these factors, a retracement within the range of $0.028-$0.026 should not be unexpected.
Nevertheless, the MA Cross indicators demonstrate a bullish sentiment, with the 9-day MA comfortably above the 21-day MA, potentially propelling the token upwards to break resistance levels and retest its 2024 high.