Over the past period, VeChain [VET] has experienced a notable uptrend, with the token currently trading at $0.02225, marking a 2.14% rise in the last 24 hours.
There has been significant attention on the possibility of VeChain breaking through the important barrier of $0.05, a milestone that could potentially lead to further price appreciation.
With a trading volume of $18.85 million over the past day and an increase in Open Interest by 3.48%, market participants are closely monitoring the next moves of the token, particularly its potential for a 100% increase in value.
Potential Bullish Movement and Analysis
Recently, VeChain managed to break out of a descending channel that had been guiding its price action in previous months. This breakout was supported by rising trading volume and price momentum.
Source: TradingView
VeChain’s price has surpassed key technical metrics such as the 9-day Exponential Moving Average (EMA) of $0.02170, indicating a possible shift towards bullish sentiment in the market.
The resistance level at $0.05 is currently a significant focus for traders. A successful breach of this level by VET could trigger increased buying activity and pave the way for further gains.
However, caution is advised in the short term as the Relative Strength Index (RSI) on the 1-hour chart stands at 50.68, suggesting neutral momentum.
Following a slight retreat from recent highs, there might be a consolidation phase before any potential upside movement.
Source: TradingView
Moreover, the Moving Average Convergence Divergence (MACD) line has recently crossed beneath the signal line, hinting at a possible short-term slowdown in momentum.
Yet, the histogram displays minimal divergence, hinting at a sideways trend in the near future.
Increased Trading Activity for VET
The Open Interest (OI)-Weighted Funding Rate for VET stood positive at 0.0099% currently, indicating that long positions were incurring funding fees to short positions.
This favorable Funding Rate suggests ongoing trader optimism regarding the coin’s outlook, although brief periods of negativity in mid-August hinted at short-term bearish sentiment at that time.
VET has observed a 26.58% surge in trading volume, reaching $18.21 million, and the Open Interest in Futures contracts has grown to $28.70 million, indicating expanding market involvement.
As per DefiLlama, VET’s Total Value Locked (TVL) stood at $80.26 billion, emphasizing its solid position in the blockchain ecosystem.
These metrics point towards a rising interest in the token, though the market remains cautious as traders anticipate confirmation of a breakout above the critical resistance level of $0.05.