VeChain [VET] has attracted investor attention by breaking out of a bullish flag formation, indicating a possible continuation of its uptrend following a period of consolidation.
This breakout, fueled by growing market interest and a surge in trading volume, represents a crucial moment for VET as it is currently trading at $0.05218, showcasing a 10.4% increase in the last 24 hours.
As VeChain gains momentum, the question arises: Can it uphold this upward movement and challenge major resistance levels?
VET Price Analysis: Breakout from Bullish Flag Pattern
The breakout from the bullish flag formation indicates strong upward momentum, with a 42.54% rise in trading volume further validating the move.
The current resistance is around the $0.057 mark, and if breached, VET could target the $0.08 level next.
Traders need to closely monitor price action as rejection at these levels might trigger a pullback. While there is significant buyer interest following the breakout, continual momentum is vital for sustained growth.
VeChain Technical Indicators: Signs of Continued Strength
Key technical indicators support the bullish scenario. The RSI is currently at 51.19, indicating room for growth without entering the overbought zone.
Moreover, the moving average crossover between the 9-day ($0.04943) and 21-day ($0.05593) moving averages signals a positive trend, hinting at potential further upward movement.
These indicators suggest that the breakout is underpinned by technical strength, with traders likely anticipating continued gains.
VET Social Sentiment: Slight Decline
Although the price has surged, VET’s social dominance has slightly decreased to 0.1% from recent peaks above 0.7%. This dip could indicate a temporary lag in social media interest compared to price action.
However, this discrepancy might also imply that the breakout is being driven by more significant market players rather than speculative retail trading, potentially adding legitimacy to the uptrend.
Open Interest and Liquidations: Growing Confidence
Open interest has risen by 13.11% to $88.23 million, reflecting renewed confidence among derivatives traders, according to Coinglass analytics.
Total liquidations show $28.56K in long positions and $646.46 in short positions, suggesting cautious optimism rather than excessive euphoria.
The balance between these factors indicates a healthy market environment, supporting the outlook for sustained growth.
VeChain’s breakout from the bullish flag pattern, reinforced by robust volume and technical signals, presents a positive prospect for the cryptocurrency.
With resistance at approximately $0.057 and continued backing from technical and market indicators, VET seems well-equipped to uphold its upward trajectory in the near term.