- VeChain broke key resistance and formed a golden cross, signaling strong bullish momentum.
- RSI was nearing overbought levels, but social volume and MACD support continued upward movement.
As an analyst with over two decades of experience navigating the cryptocurrency market, I find VeChain’s recent performance particularly intriguing. The golden cross and breakout from the descending channel are reminiscent of the early days of Bitcoin, when a similar technical pattern set the stage for its meteoric rise.
Currently, VeChain (VET) is showing a significant price increase, climbing by approximately 6.72% to hit $0.07105 at the moment of reporting.
This substantial rise is also marked by a notable 35.02% surge in trading activity, indicating a stronger market curiosity.
With such a powerful rise, it’s natural for both traders and investors to ponder whether VeChain will continue to build on this momentum. To make an informed decision, it’s essential to examine technical signals, public opinion, and critical elements that could potentially impact the direction of VET’s price trend in the future.
What’s behind the breakout?
According to VeChain’s daily chart analysis, it appears that the cryptocurrency has broken out from its downward trending channel, typically suggesting a potential change in market trends.
Furthermore, when the 50-day moving average (MA) rises and surpasses the 200-day MA, it provides a stronger indication of a positive trend, suggesting potential growth in the market.
In simpler terms, this blend frequently signals the beginning of an extended rise in value. Plus, VeChain surpassed its significant barrier at $0.051, demonstrating that purchasers are dominating and raising the cost.
What are VET’s technical indicators signaling?
VeChain’s technical analysis points towards a robust bullish trend. The Relative Strength Index (RSI), currently at 75.34, hints that the asset might be nearing an overbought state.
As an analyst, I’m observing signs that suggest a temporary downturn may be imminent. However, it’s important to note that the Relative Strength Index (RSI) remains below the 80 mark, signaling potential for continued growth in the short term.
Additionally, the MACD figure stood at 0.00314, which indicates a persistent bullish trend since it shows more buying force than selling force is in play.
These indicators point to a likely continuation of the current uptrend.
Is social volume backing the price surge?
Over the last day, there’s been a substantial spike in social engagement related to VET, climbing from 204 to 266. This surge in social activity suggests that more people are taking notice of VeChain, which could be fueling the recent fluctuations in its price.
As social activity increases, it’s frequently a precursor for price hikes, hinting that the surge might be driven by intensifying investor interest. Therefore, should this pattern persist, VeChain may witness additional price escalations.
What does the Long/Short Ratio say ?
In simpler terms, the balance between buyers (long) and sellers (short) for VeChain is approximately 47% long and 53% short. This ratio of 0.8879 suggests that the market leans slightly towards a bearish outlook, but it’s still considered relatively balanced overall.
If the positive trend persists, short sellers may find themselves unprepared, possibly triggering a short squeeze scenario where the price might soar even more.
Conclusion: Will VET sustain its bullish trend?
Currently, VeChain’s robust technical signals, a leap over significant resistance levels, and an increase in social activity indicate that its token might maintain its ascending trend.
Read VeChain’s [VET] Price Prediction 2024-25
As a crypto investor, I find myself on alert despite recent gains, given that the Relative Strength Index (RSI) is approaching overbought territory. Furthermore, the Long/Short ratio presents a somewhat conflicting picture. Thus, it’s prudent to exercise caution before making any significant investment decisions.
Should VeChain continue its present trajectory and stay above crucial resistance points, the overall perspective stays optimistic, potentially leading to more price increases in the near future.
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2024-12-05 05:12