VeChain sees a breakout: Will VET hit $0.05 soon?

by
  • VeChain’s breakout above the descending channel positions it for a potential rally toward $0.05.
  • Market activity suggested cautious optimism despite declining social dominance.

As a seasoned crypto investor with battle scars from the 2017 bull run and the subsequent bear market, I must admit that I find VeChain’s (VET) recent breakout intriguing. The token’s escape from its multi-year descending channel has been a long time coming, and it’s always exciting to witness such events in our ever-evolving crypto landscape.

Lately, VeChain (VET) has burst free from a prolonged downward trend, stirring fresh hopes among investors and drawing increased interest.

At the moment of reporting, VET was being traded for $0.03254, showing a drop of 0.82% in the past 24 hours.

Over the past few days, the value of the token has fallen from $0.035, and its social influence has dropped from 0.242% to 0.181% compared to the day before. However, even with these decreases, could VET manage to maintain its surge and head towards $0.05?

2 factors hint at a bullish continuation

VET’s price surge has placed it almost at the critical resistance point of $0.035. If it manages to end the day with a strong close above this threshold, it could potentially trigger a bullish momentum leading towards $0.05, an important goal that aligns with the 4.236 Fibonacci extension level.

Should the price action stabilize, I’d be keeping a close eye on the $0.0319 area as a significant support zone according to my Fibonacci analysis.

At the current moment, on the daily chart, the Relative Strength Index (RSI) stood at 64.8. This suggests that the market momentum remains bullish, but it’s important to adopt a cautious stance since VET is approaching overbought conditions.

Consequently, as more purchasing occurs, there’s a possibility that the price might surpass resistance points and maintain its upward trend.

Social dominance reflects mixed sentiment

The percentage of social dominance in the VET sector has dropped from 0.242% yesterday to currently stand at 0.181%.

This substantial decrease suggests a decline in conversations about Vocational Education and Training (VET) on social media, potentially leading to a diminished level of speculation.

As a result, increasing interaction and reinvigorating social participation is essential to keep up the pace and draw in additional traders to the market.

Liquidation data reveals potential volatility

The data on liquidations indicates that a total of $41,500 from long positions has been cleared out, while only $5,960 was affected for short positions.

This skew indicates that aggressive buyers remain in control, yet it underscores the possibility of market turbulence. Should the number of long positions being closed rise more significantly, it might weaken VET’s capacity to maintain its present position.

Open Interest points to increasing confidence

The interest in trading VET has grown by 0.69% to a total of $48.94 million, suggesting an uptick in trader confidence and active market participation related to VET.

As the Open Interest increases, it generally underpins prolonged price trends. However, this surge could potentially cause greater price fluctuations, particularly when VET nears significant resistance points.

Will VET hold its breakout?

VeChain’s breakout from the descending channel has positioned it for a potential rally toward $0.05.

Read VeChain’s [VET] Price Prediction 2024-25

Yet, the drop from $0.035 and the diminished social influence hinted at difficulties in maintaining progress.

If VeChain (VET) surpasses $0.035 with increased trading activity and user interaction, it might surge towards $0.05. If it fails to maintain its current position, though, there could be a brief period of sideways movement. At the moment, the sentiment remains slightly optimistic but cautious.

Read More

2024-11-20 17:44