VeChain’s native token, VET, has recently witnessed an impressive price upswing, climbing by 6.72% and hitting $0.07105 at the current moment.
This substantial upward movement is accompanied by a notable 35.02% surge in trading volume, indicating a heightened interest in the market.
With this robust surge, traders and investors are eager to determine whether VeChain can sustain its upward momentum. It is essential to scrutinize technical indicators, social sentiment, and other critical factors that could impact VET’s future price action.
What is the reason behind the breakout?
Analysis of VeChain’s daily chart reveals a breakout from its descending channel, typically signaling a shift in market direction.
Moreover, the occurrence of a golden cross, where the 50-day Moving Average (MA) surpasses the 200-day MA, reinforces the optimistic outlook.
This crossover often signifies the beginning of an extended uptrend. Furthermore, VeChain has breached its significant resistance level at $0.051, indicating that buyers have seized control and propelled the price upwards.
What do VET’s technical indicators indicate?
VeChain’s technical indicators portray a strong bullish sentiment. The Relative Strength Index (RSI) was recorded at 75.34, indicating that the asset is nearing overbought conditions.
This could suggest a temporary cooldown, but given that the RSI remains below the 80 threshold, there is potential for further upward movement.
Additionally, the positive MACD value of 0.00314 corroborates the bullish sentiment. A positive MACD implies that buying pressure continues to outweigh selling pressure.
These indicators point towards a probable continuation of the ongoing uptrend.
Is the surge in price backed by social volume?
Social volume related to VET has significantly surged, escalating from 204 to 266 within the last 24 hours. This uptick in social activity indicates a growing interest in VeChain, potentially steering the recent price surge.
An increase in social volume frequently precedes price surges, suggesting that the uptick could be driven by heightened market attention. Consequently, if this trend persists, VeChain might witness further price upswings.
What does the Long/Short Ratio reveal?
The Long/Short Ratio for VeChain was reported at 47.03% long and 52.97% short, with a ratio of 0.8879. This points to a relatively balanced market, slightly tilting towards bearish sentiment.
However, in the scenario of the bullish momentum persisting, short sellers might find themselves in a challenging position, potentially triggering a short squeeze that could push the price even higher.
Conclusion: Can VET uphold its bullish trend?
As of now, VeChain’s robust technical indicators, breakout from crucial resistance levels, and increasing social volume imply that the token could prolong its upward trajectory.
Nevertheless, with the RSI nearing overbought levels and a Long/Short ratio showing a mixed sentiment, caution is advised.
If VeChain manages to sustain its present momentum and uphold key support levels, the outlook remains optimistic, potentially resulting in further price gains in the impending days.