VeChain (VET) has been establishing an upward slope in its price and its current movements suggest that the token may continue to rise. Technical analysis shows that the cryptocurrency is challenging major resistance levels that may spur higher gains.
Currently, VET token stands at $0.04121 and as observed earlier, the price has slightly retracted after the upswing in the past weeks. However, the current price action has compelled analysts to expect the token to mark higher levels.
The fundamental of the current optimism is founded on the flag breakout pattern which is bullish and points towards bullish confirmation. Experts predict that the crypto will rise above $0.056 in the long term, and eventually hit $0.15.
Key Technical Indicators Suggest Upward Momentum
The technical analysis of VeChain using the weekly chart shows signs of an uninterrupted bullish trend. One of the significant markers is the shift above the former resistance trendline.
This shift took the price 70% above last month’s level, a likely signal of a new trend. In addition to the breakout, the 50-week Exponential Moving Average (EMA) indicator for bullish strength starts to display.
More recently, a bullish “golden crossover” between the 50-week EMA and the 200-week EMA indicates an upward turning point. Moreover the MACD has a bullish outlook because the MACD line and the signal line are above the zero which signals the upward price direction for VeChain.
The histogram has recently increased, meaning there is a consolidation of the bullish momentum and there is a greater difference between the MACD line and the signal line.
However, the last part of the histogram appears to be slightly smaller to the previous higher bars meaning that the bullish momentum could be beginning to ease up.
Flag Breakout Pattern and Near-Term Price Targets
As per the chart analysis by the analyst Ali Martinez, VeChain is also in a probable flag breakout pattern and could reach $0.056 in the short term.
This kind of a flag formation typically indicates that the uptrend from the prior rally may be a continuation pattern, allowing the alternation to start.
Martinez also noted that VET price action is already getting close to key resistance at the $0.043 level which coincides with the 78.60% Fibo retracement.
VET must surpass this range and should it do so, it will be followed by an instant 30% vertical price movement up to $0.056. This is the first major step towards the achievement of elevated price objectives. The critical supports for this breakout scenario are located at $0.043 and $0.040l.
Long-Term Outlook: Potential for a 250% Price Surge
If the upward momentum persists and the cryptocurrency stays above significant Fibonacci levels, it might rise to $0.15. This implies that the potential upside of the stock is nearly 250% above its current market price.
For bold predictions to hold, VeChain will have to sustain an uptrend in the market and break above the key resistance level of $0.087. However, if the price fails to hold above key support levels including $0.033, it could retest the 50 week EMA at around $0.028.
