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VeChain (VET) is on the cusp of an explosive surge, as market analyst EGRAG identifies an imminent bullish cross involving the 21-week EMA and the 55-week MA at the $0.035 price level.
EGRAG pointed this out in his latest VET analysis, charging investors to closely monitor VeChain’s weekly chart. The analyst shared an accompanying 1-week chart showcasing the looming bullish cross.
When the 21-week Exponential Moving Average (EMA) crosses above the 55-week Moving Average (MA), it could signify a bullish trend reversal or strengthening momentum. Market watchers often view it as potential buy signal, suggesting that the shorter-term trend is gaining strength.
VET’s Historical Data
Data from EGRAG’s chart confirms that the last time VET recorded this bullish cross was in June 2020. Interestingly, at the time of the crossover, VET traded at a low of $0.00717.
However, following the cross, VeChain surged to a high of $0.0229 in August 2020. The asset faced resistance at this level, but engineered another comeback that eventually led to its all-time high of $0.2798 in April 2021. This rally represented a 3,802% surge in ten months.
Nonetheless, amid the correction VeChain suffered from the April 2021 ATH, the 21-week EMA dropped below the 55-week MA in January 2022, signaling weak momentum. This drop led to a collapse from a $0.0831 high. VET has continued to suffer from the effects of the drop till now.
VeChain Targets Breakout
Now, with the ongoing market-wide uptrend, VeChain has registered bullish momentum, up over 34% in the past month. As VET sustains this upward trajectory, the 21-week EMA is now closing in on the 55-week MA, looking to break above it.
Notably, the 21 EMA currently stands at $0.0188 while the 55 MA sits at $0.0199 at the reporting time. Both moving averages are recording upward moves amid VET’s uptrend. EGRAG believes VeChain could see its price skyrocket further if the 21 EMA eventually crosses above the 55 MA.
However, the analyst noted that, for a confirmation of this bullish run, VET needs to register a weekly close above the $0.035 zone. The last time this happened was in May 2022. VeChain currently changes hands at $0.02193, trading above both MAs.
EGRAG failed to project any price targets for when this rally occurs. However, he expressed confidence in VET’s potential, asserting that it could lead to financial freedom. Meanwhile, VeChain’s volume remains relatively stable, with a mild 0.98% drop to $42,674,761.