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Despite the 37% price jump in the Vechain (VET) price, which is struggling to surpass the $0.032 level, the altcoin warns of a continuation of the downfall.
Notably, a potential evening star and a falling channel formation warns of the $0.030 breakdown. However, will the breakdown rally hit 0.027?
Vechain Struggles At $0.32 Post 42% Surge
With a clear downtrend in the daily chart, Vechain has dropped from the 2024 peak at $0.051 to test the $0.02254 support level. The downfall accounts for a 54% decline in the VET market cap in just four months.
However, amid the broader market recovery coupled with the hype surrounding the VeBetterDAO release, Vechain quickly took a bullish reversal. The reversal from the $0.02254 level accounts for a 42% surge to challenge a secondary resistance trendline marked out in the chart above.
VET reclaims the $0.030 mark but struggles to surpass the overhead trendline, resulting in additional stress of over $0.030. Currently, VET trades at $0.029, registering an intraday decline of 1.92%. However, the constant show of underlying demand is visible with lower price rejections in the form of small-tailed candles.
Amid the declining momentum, the MACD and signal lines warn of a bearish crossover as VET tests the 23.60% Fibonacci level at $0.029.
Declining Channel Warns $0.030 Drop
In the 4H chart, VET trades within a falling channel pattern and tests the 100 EMA near the support trendline. While a potential double bottom reversal looms, underlying demand teases a strong bull cycle.
Further, the RSI line shows a gradual lateral shift as the downfall takes support. With a bullish divergence in the 4H RSI line, the momentum indicator teases the Vechain market price spike.
Will VeChain Surpass $0.050?
A high momentum uptrend is possible because the bull cycle in the 4H chart gains momentum to break the falling channel. Starting a domino effect, the channel breakout could result in the secondary resistance trendline in the 1D chart.
Analyzing the bullish targets based on the Fibonacci levels, Vechain is likely to reclaim the 50% Fib level at $0.036. However, a bullish failure and breakdown under $0.030 will likely drop VET to $0.025.
The chances of reaching $0.050 depending on the critical trendline breakout. In such a case, the bull run will not just hit $0.050 but likely surge to the 1.618 Fib level at $0.069.