VeChain [VET] experienced a 25.6% increase on Monday, December 2nd, and has seen a rise of 17% within the last eight hours. While potential further increases are possible, it might be wise to wait for a drop towards $0.055 before considering purchasing VET.
Since November 5th, VeChain has recorded an impressive growth of almost 250%. VET is following the pattern of more established tokens taking the lead among large-cap altcoins in the current bullish market, similar to Stellar [XLM] and Ripple [XRP].
3-day Relative Strength Index (RSI) and On-Balance Volume (OBV) Approaching Levels Seen in April 2021
Analysis of the 3-day chart reveals a significant breach of the highs from March, with prices exceeding the 23.6% extension level set during the early 2024 rally. This demonstrates a strong bullish momentum and suggests a potential further uptrend in price.
The RSI on the 3-day chart has reached 89, a level not seen since mid-April 2021 when VET hit its all-time high of $0.281. Despite being 75% lower than this peak, the next resistance levels beyond $0.0645 are anticipated at $0.08 and $0.095.
Similarly, the OBV surged notably higher, revisiting levels last witnessed in April and May 2021. While this indicates significant buying pressure, there are hesitations that this could mark the peak for VeChain.
The future remains uncertain in this regard. Traders and investors should anticipate a potential pullback in the weeks ahead, discouraging impulsive buying at current levels.
Increased Liquidity Focused around $0.065
Observations from the recent 48-hour liquidation heatmap point towards liquidity clusters around $0.07 and $0.065, which are likely to draw prices towards them like a magnetic field.
Upon closer examination, $0.065 and $0.055 emerge as the nearest significant liquidity pools. The rapid price uptick of VeChain in recent weeks has left minimal time for market consolidation at key levels.
Therefore, traders should be prepared for a decline towards $0.055, without necessitating short-selling. The prevailing bullish trend in higher timeframes suggests that any retracements are likely to be swiftly bought up.
A substantial price drop for VeChain below $0.04 could indicate a weakening of bullish momentum and signal a potential end to the uptrend. Until such a development materializes, investors and traders should maintain a bullish outlook.
Disclaimer: The information provided is the writer’s opinion and should not be considered as financial, investment, or trading advice.