Vechain
VeChain rises 27% in 7 days: Is VET ready for a double breakout?
VeChain was on its way to break above a multi-year resistance, which could push VET to its 2024 high.
- VET’s price increased by more than 27% in the last seven days.
- While the price increased, its trading volume dropped.
Over the past few months, VeChain [VET] has lost a substantial amount of its market share because of price declines. Though the current bullish market condition has allowed it to recover slightly, VET still has a long way to go.
However, in a spot of good news, the token seemed to be expecting a double breakout.
VeChain to breakout again?
The token witnessed impeccable growth last week as its value surged by over 27%. The past 24 hours also aligned with investors’ interest because of a more than 9% price hike.
At the time of writing, VET was trading at $0.03267.
In the meantime, World Of Charts, a popular crypto analyst, posted a tweet pointing out that VET had broken above a falling wedge pattern, allowing it to grow sharply over the past few days.
This surge was pushing the token towards yet another horizontal and diagonal resistance of a multi-year pattern. The triangle pattern emerged in 2020, and since then, VeChain has been consolidating inside it.
A breakout above that level could spark a massive rally in the upcoming altcoin season. In fact, if things fall in place, it won’t be surprising to see VET retesting its 2024 high again before the year ends.
Source: X
But there are problems
Investors might have to wait longer for the breakout, as a few bearish metrics appeared. First and foremost, VET’s trading volume dropped by 44% in the last 24 hours white its price surged.
A decline in the metric indicates that there are chances of the ongoing price trend changing.
VeChain’s Open Interest (OI) increased sharply, indicating investors’ confidence. However, since the metric increased drastically, it might be able to sustain the momentum and drop in the coming days.
Source: Coinglass
Additionally, at the time of writing, VeChain’s fear and greed index was in the “extreme greed” phase. Whenever the metric reaches this level, it suggests a price correction.
The token’s Relative Strength Index (RSI) was also about to enter the overbought one. This could impact market sentiment, causing investors to sell.
It thus won’t be a surprise to see a pullback within the $0.028-$0.026 range.
Read VeChain’s [VET] Price Prediction 2024-25
Nonetheless, the MA Cross indicators displayed a bullish upper hand in the market, as the 9-day MA was well above the 21-day MA.
This could allow the token to move upward and break the resistance to retest its 2024 high again.
Source: TradingView
