VeChain’s cryptocurrency, VET, has recently broken out of a lengthy descending trend, sparking renewed optimism among investors and garnering significant interest.
As of the latest updates, VET is currently priced at $0.03254, experiencing a slight decrease of 0.82% over the past 24 hours.
Despite a recent drop from $0.035 and a decline in social dominance from 0.242% to 0.181%, there is speculation about whether VET can maintain its upward momentum and progress toward the $0.05 mark.
Positive Indicators Pointing Towards a Bullish Trend
Following its breakout, VET is now nearing the crucial resistance level of $0.035. A decisive daily close above this point could set the stage for a potential surge towards $0.05, a significant target reinforced by the 4.236 Fibonacci extension level.
Another notable consideration is the $0.0319 support zone highlighted by the Fibonacci retracement analysis, signaling a key area to watch for potential price consolidation.
At the moment, the Relative Strength Index (RSI) on the daily chart stands at 64.8, indicating ongoing bullish momentum while also suggesting a need for caution as VET approaches overbought conditions.
If buying pressure intensifies further, breaching resistance barriers could enable VET to sustain its upward trajectory.
Varied Sentiments Reflected in Social Dominance
The social dominance metric for VET has fallen from 0.242% to 0.181% recently. This decline underscores decreased conversations and engagement surrounding VET on social media platforms, potentially dampening speculative interest.
To maintain positive momentum and attract more participants, heightened social interaction and increased engagement are crucial for VET’s sustained progress in the market.
Volatility Insights from Liquidation Data
Analysis of liquidation data reveals that long positions worth $41.5K have been liquidated, significantly higher than the $5.96K in short positions. This imbalance indicates a prevailing bullish sentiment but also hints at the potential for increased volatility in VET’s price movements.
If long liquidations continue to rise, there may be adverse effects on VET’s ability to maintain its current price levels.
Growing Market Confidence Based on Open Interest
Open Interest for VET has seen a 0.69% increase, reaching $48.94 million. This upward trend in Open Interest signifies mounting confidence among traders and heightened market activity surrounding VET.
While escalating Open Interest typically supports sustained price trends, it could also contribute to heightened price volatility, particularly as VET approaches critical resistance thresholds.
Can VET Uphold Its Breakout Momentum?
VeChain’s successful breakout from the descending trend suggests a potential push towards the $0.05 mark.
However, challenges stemming from the drop in value from $0.035 and reduced social dominance indicate hurdles in sustaining the current momentum.
A scenario where VET closes above $0.035 with increased trading volume and engagement could pave the way for a surge to $0.05. Failure to maintain the current levels may lead to a short-term consolidation. Presently, the prevailing sentiment leans cautiously towards bullish expectations.