VeChain Bulls Eye 2x Rally as Falling Wedge Pattern Forms
- VeChain token surges nearly 5% in 24 hours amid broader crypto market recovery.
- Technical analysis reveals potential falling wedge breakout after 75% three-month decline.
- Price targets suggest possible run to $0.050 if bullish momentum continues.
VeChain (VET) is showing signs of a potential trend reversal as Bitcoin climbs above $87,000, igniting renewed interest across the altcoin market. The supply chain-focused cryptocurrency has experienced a notable surge, positioning it for a possible breakout from a bearish pattern that has dominated its price action for months.
VeChain’s recent price movement suggests the formation of a bullish reversal pattern on the daily chart. This technical development has sparked speculation about whether VET could be preparing for a significant rally that might double its value in the coming weeks.
Analysis of VeChain’s daily chart reveals the extent of bearish pressure the token has faced since early December 2024. Over the past three months, VET has plummeted from $0.080 to a low of $0.01873, representing a dramatic 75% decline. Throughout this downtrend, the cryptocurrency has formed a falling wedge pattern characterized by converging trendlines and narrowing price movements.
VeChain shows signs of momentum
This technical formation is particularly significant because falling wedges typically indicate a buildup of momentum despite ongoing bearish price action. They often precede breakout rallies when price action finally breaches the upper trendline of the pattern.
With today’s impressive 4.99% intraday recovery, VET is now trading at approximately $0.027, forming a bullish engulfing candle that directly challenges the overhead resistance trendline of the wedge pattern. This sudden surge in buying pressure suggests increasing interest from traders anticipating a potential pattern breakout.
Technical indicators offer mixed but generally supportive signals for the bullish case. The contracting Bollinger Bands indicate minor consolidation, while momentum indicators point toward a possible trend reversal. The Directional Movement Index (DMI) shows a high probability of a positive crossover between the +DI and -DI lines, typically considered a bullish signal. However, the declining Average Directional Index (ADX) line suggests that overall trend strength continues to weaken.
Looking ahead, Fibonacci retracement levels provide potential price targets should the breakout materialize. An initial move could take VET toward the 78.60% Fibonacci level at $0.03177, representing a significant resistance slightly above the psychologically important $0.030 mark and near the upper Bollinger Band at $0.02898.
Read More
Ethereum’s 30.24% Surge in May: Why ETH Holders Are Set for Big Rewards
XRP Price Targets $3 as SuperTrend Buy Signal and SEC Settlement Boost Confidence
VeChain Bulls Eye 2x Rally as Falling Wedge Pattern Forms
- VeChain token surges nearly 5% in 24 hours amid broader crypto market recovery.
- Technical analysis reveals potential falling wedge breakout after 75% three-month decline.
- Price targets suggest possible run to $0.050 if bullish momentum continues.
VeChain (VET) is showing signs of a potential trend reversal as Bitcoin climbs above $87,000, igniting renewed interest across the altcoin market. The supply chain-focused cryptocurrency has experienced a notable surge, positioning it for a possible breakout from a bearish pattern that has dominated its price action for months.
VeChain’s recent price movement suggests the formation of a bullish reversal pattern on the daily chart. This technical development has sparked speculation about whether VET could be preparing for a significant rally that might double its value in the coming weeks.
Analysis of VeChain’s daily chart reveals the extent of bearish pressure the token has faced since early December 2024. Over the past three months, VET has plummeted from $0.080 to a low of $0.01873, representing a dramatic 75% decline. Throughout this downtrend, the cryptocurrency has formed a falling wedge pattern characterized by converging trendlines and narrowing price movements.
VeChain shows signs of momentum
This technical formation is particularly significant because falling wedges typically indicate a buildup of momentum despite ongoing bearish price action. They often precede breakout rallies when price action finally breaches the upper trendline of the pattern.
With today’s impressive 4.99% intraday recovery, VET is now trading at approximately $0.027, forming a bullish engulfing candle that directly challenges the overhead resistance trendline of the wedge pattern. This sudden surge in buying pressure suggests increasing interest from traders anticipating a potential pattern breakout.
Technical indicators offer mixed but generally supportive signals for the bullish case. The contracting Bollinger Bands indicate minor consolidation, while momentum indicators point toward a possible trend reversal. The Directional Movement Index (DMI) shows a high probability of a positive crossover between the +DI and -DI lines, typically considered a bullish signal. However, the declining Average Directional Index (ADX) line suggests that overall trend strength continues to weaken.
Looking ahead, Fibonacci retracement levels provide potential price targets should the breakout materialize. An initial move could take VET toward the 78.60% Fibonacci level at $0.03177, representing a significant resistance slightly above the psychologically important $0.030 mark and near the upper Bollinger Band at $0.02898.
Read More
Ethereum’s 30.24% Surge in May: Why ETH Holders Are Set for Big Rewards