VeChain surges 15% in 24 hours: Will VET face a rejection at $0.0073?
Despite VET's swift gains, the long-term downtrend has not yet been shaken off.
VeChain [VET] has rallied 15% in the past 24 hours and is up 48% from Wednesday, the 19th of August. The altcoin’s explosive gains came alongside the Bitcoin [BTC] rally and the bullish confidence the move imparted to the altcoin market.
The daily trading volume of VET has been high, compared to its 20-day average, since last Wednesday. It appeared that capital rotation into altcoins spurred the VeChain token prices higher.
This led to increased speculative interest. Bullish speculative activity has helped keep the momentum going.
An important question for holders and traders now is whether the move can continue or if it is time to start taking profits. As Bitcoin approaches a key supply zone, the chances of a sell-off increase.
The VET rally might extend another 10% higher
VeChain has been in a long-term downtrend. The consolidation phase in July and the first half of August below the $0.050 resistance zone was decisively ended.
A local high at $0.0055 was flipped to support in recent days, and the buyers continued to send prices soaring.
The swing structure, captured by the Fibonacci retracement levels (yellow), was bearish despite the recent rally. The golden pocket between the 61.8%-78.6% retracement levels at $0.00619 and $0.0073 is being tested at the time of writing.
Since the latter level is 10% away from current market prices, the rally could continue before facing rejection. The bearish bias is warranted, given the long-term downtrend and the bearish swing structure.
Traders’ call to action – Take profits
Examining the liquidation heatmaps, the key magnetic zones around $0.005 and above $0.0062 were both breached decisively. There aren’t significant liquidation levels that have been built up overhead over the past three months.
The trading volume and OI uptick showed buying pressure in the Spot and perpetuals markets. If this continues, a bullish structure break is possible. But until then, traders and investors can opt to remain safe and lock in any profits they have made.
A breakout past $0.0081 will confirm a bullish trend shift.
Final Summary
- VeChain was one of the strongest-performing altcoins in the past 24 hours, up 15% in a day and 48% since last Wednesday.
- Despite the altcoin’s swift gains, the long-term downtrend has not yet been shaken off.
