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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.