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Will VeChain reclaim the $0.050 psychological mark as bulls prepare for a falling wedge breakout rally?
The crypto market is witnessing and anticipating a potential bullish recovery in the altcoin market as Bitcoin crosses above the $87,000 mark. Among the rapidly rising altcoins, VeChain has experienced a significant surge of nearly 5% over the past 24 hours.
Currently, the VET token is trading at a market price of $0.02647 with a market cap of $2.27 billion. With this short-term recovery, the altcoin shows signs of a potential falling wedge breakout rally on the daily chart. Could this lead to a 2x rally for VeChain?
VeChain Price Analysis
On the daily chart, the VET token’s price trend shows a significant bearish influence. Since early December 2024, the token has dropped from $0.080 to $0.01873.
This represents a nearly 75% decline over the past three months. During this downtrend, VeChain has formed a falling wedge pattern, characterized by the narrowing of price movements. This pattern indicates a buildup of momentum despite the ongoing bearish trend.
With an intraday recovery of 4.99%, VET is currently trading at $0.027, creating a bullish engulfing candle that challenges the overhead resistance trendline.
While the sudden surge in demand hints at a potential pattern breakout, the sideways movement of the contracting Bollinger Bands suggests minor consolidation. However, the momentum indicator supports the possibility of a trend reversal.
The DMI indicator shows a high likelihood of a positive crossover between the +DI and -DI lines. However, the declining ADX line signals that the trend momentum is still weakening.
VET Price Targets
Based on Fibonacci levels, a falling wedge breakout rally could push the price toward the 78.60% level at $0.03177. This crucial resistance is slightly above the $0.030 psychological mark and near the upper Bollinger Band at $0.02898.
Optimistically, with a broader market recovery, the altcoin could reach the 50% Fibonacci level, which is close to the psychological mark of $0.050.
On the downside, the key support levels are the lower Bollinger Band at $0.02254, followed by the psychological support at $0.020.