VeChain: Post recent rally, here’s what these indicators have to say about VET
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
For over three weeks, VeChain (VET) has been traversing in compression within the horizontal channel (yellow). The recent bullish push aided the alt to jump above its Point of Control (POC, red) as VET endeavored to escape its high liquidity range.
Any pullbacks from here could lead to an extended sluggish phase before the bulls aim to break above the $0.032-level. At press time, VET traded at $0.03246, up by 6.44% in the last 24 hours.
VET 4-hour Chart
In accelerating their efforts to raise the selling pressure, VET sellers provoked multiple rallies over the last few months. The altcoin lost over 73% (from 31 March) of its value and plunged toward its 15-month low on 12 May.
Since then, the buyers propelled gradual improvements in VET’s troughs as chalked out by the three-week trendline support (white, dashed). But the bearish rebuttal has kept the peaks within the constraints of the side channel.
After the recent gains, the 20 EMA (red) looked north and eyed to cross the 50 EMA (cyan). A potential bullish crossover can pave a path for a heightened revival in the days to come.
Over the last month, a break above the POC has more often than not given enough thrust to the buyers for testing the upper trendline of the side channel. But VET needs to find a compelling close above the $0.0321-level to eye a test of the $0.033-zone.
Over the last three days, the RSI registered exponential growth. While closing beyond the equilibrium, the index now aimed to test the overbought mark.
With the Aroon Up in the 70%-100% zone, VET could continue its ongoing uptrend in the coming sessions. A drop below this zone could hint at a near-term slowdown in the buying pressure.
Looking at the current break above the POC and the $0.032 resistance, VET could see a continued recovery toward the upper trendline of the side channel before a likely reversal. Any close below the $0.032-zone would indicate the possibility of an extended squeeze near the POC.
Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.