VeChain (VET) broke out of a long descending wedge after surging 22% last week. This is a strong signal of a long term bottom.
VET price has been in a downtrend since hitting an all-time high of $0.2793 in April 2021. A falling wedge, seen as a bullish pattern, had halted the downward movement.
In June 2022, the price dropped to a low of $0.0200 before recovering and starting a fresh increase. After making a slightly lower low in December, the price started another upward movement.
VET broke out from the descending wedge in the second week of this month. While it is difficult to pinpoint the exact slope of the line due to the many extended upper wicks, it appears that price has now broken out.
Given that the wedge has been present for 370 days, if this were to happen, there would probably be a big upward move.
The upside potential is supported by the weekly RSI that broke above its own descending resistance line. If the upward movement continues, the nearest resistance area will be at $0.063. This is a long term zone that previously provided support. An up move would confirm that a bullish reversal is taking place. From the current price, the sector is up more than 200%.
VeChain price moves towards the resistance line
The technical analysis forecast is undecided on the daily chart. VET faces resistance from a confluence of the $0.0215 level, formed by a descending resistance line and the $0.0215 resistance area.
The level caused a rejection (red icon) on Jan 17 and the current downward movement for VET began. Besides, the daily RSI declined below 70 from it.
A break above the descending resistance line and $0.0215 area will confirm a bullish reading from the weekly chart. In this case, an increase to $0.063 would be expected.
To conclude, the most likely VeChain price forecast is an increase towards the long-term resistance area at $0.062. A breakout from the short-term descending resistance line would confirm this possibility. On the other hand, there could be a rejection of the line towards $0.0186-$0.0178.
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