VeChain hits KEY support! – Examining odds of VET’s 40% rally

Key Takeaways

• VeChain broke out of its bearish trend, surging 7.25% amid bullish momentum, rising volume, technical breakout, and strong long interest, setting sights on a potential 40% rally to $0.032.

VeChain [VET] has finally ended its prolonged bearish trend with an impressive upside momentum. 

This shift in the overall market structure comes after a period of uncertainty and volatility. All these have notably benefited VET, which is now poised for massive upside momentum.

At press time, VET was trading near $0.0225 and recorded a price surge of over 7.25% in the past 24 hours.

During this period, investors and traders have shown strong interest in the token, leading to a 45% surge in trading volume.

This increase in volume reflects growing interest, likely driven by a recent breakout following a price uptick and a shift in overall market sentiment.

Vechain’s technical analysis and key levels 

AMBCrypto’s technical analysis revealed that VET, with its recent rally, has broken out of a prolonged consolidation phase and a resistance level formed by a descending trendline.

Moreover, the asset has successfully closed a daily candle above this breakout level, suggesting that VET is now on the verge of an upside rally.

Meanwhile, VET’s weekly chart also reflects a strong bullish outlook.

According to the chart, VET appeared to be forming a bullish double-bottom price action pattern at the time of writing.

Additionally, it showed a bullish divergence, suggesting a potential upside rally in the coming days.

Another catalyst for VET’s potential upside is the support level at $0.019, coupled with a bullish candlestick pattern.

 Since November 2023, VET has hit this support level six times, each leading to a strong rally, which investors expect to repeat.

Technical indicators across both daily and weekly charts show that VET may have broken free from its prolonged bearish trend and is now positioned for a sharp move upward.

If bullish momentum holds and VET stays above $0.022, the token could climb as much as 40%, potentially reaching $0.032. 

However, falling below the $0.022 level could trigger either a pullback or sideways movement.

Despite recent gains, VET was trading under its 200-day Exponential Moving Average (EMA), as of writing, indicating that it hasn’t fully exited the broader downtrend.

On-chain metrics show bullish traders’ sentiment 

Given the current market sentiment, traders on Binance have shown strong interest in the asset, as revealed by the on-chain analytics firm CoinGlass.

At press time, the Binance VETUSDT Long/Short Ratio stood at 1.92, indicating strong bullish sentiment among traders.

This metric further shows that 65.76% of traders were holding long positions, while 34.24% were in short positions.

Additionally, traders are currently overleveraged at $0.0208 on the lower side (where most traders seem to be betting) and $0.0229 on the upper side.

Combining these on-chain metrics, it appears that bulls are currently dominating the asset, and the price may continue its upside momentum in the coming days.