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VeChain: A Make-or-Break Moment for VET

VeChain: It's MAKE Or BREAK For VET!
VeChain: It's MAKE Or BREAK For VET!

VeChain (VET), a leading enterprise blockchain platform, has experienced significant growth in recent months, surging by over 100% in the last six months alone. This impressive rally has raised questions about the sustainability of the move and whether it marks a pivotal point for the token.

Chart Analysis and Potential Retrace

On the monthly chart, VET is approaching the 50 EMA (Exponential Moving Average), a key technical indicator that has historically acted as a resistance point. While the price has tested this level twice before, it has failed to break above it, suggesting that further upside momentum may be limited.

The weekly chart also shows VET nearing the 200 EMA. This longer-term moving average has previously acted as a strong support level, and its potential break could signal a significant shift in the market sentiment.

However, the 4-hour chart paints a more nuanced picture. While the price has experienced a strong pump to the upside, the internal structure suggests corrective patterns rather than impulsive moves. This could indicate that the current rally is unsustainable and that a retracement is likely.

Historical Liquidity Pockets and Market Exhaustion

JB also identifies historical liquidity pockets, areas where large volumes of VET have been traded in the past. These pockets could potentially act as support or resistance levels, influencing the price movement.

Taking a macro view on the daily and weekly time frames, it is evident that the upward momentum is showing signs of exhaustion. This suggests that a pullback is due, providing an opportunity for investors to accumulate positions at a more favorable price.

Scenarios for Continued Upside and Potential Correction

JB explores two potential scenarios for VET:

  1. Continued Upside: VET breaks above the 50 EMA and the 200 EMA, setting the stage for a continued rally towards higher levels.
  2. Retracement: The price pulls back to test historical liquidity pockets or Fibonacci levels, providing a buying opportunity for long-term investors.

Trading Caution and Long-Term Potential

Despite the potential for upside movement, JB remains cautious about prolonged upward trends and advises traders to exercise caution. A tight stop-loss order is recommended to protect profits in case of a retracement.

However, JB remains optimistic about the long-term potential of VET, citing its strong fundamentals and its partnerships with major enterprises. Potential price targets like $1 are mentioned, but these are speculative.

Conclusion

The recent rally in VET has brought the token to a critical juncture. JB suggests that a retracement is likely, providing an opportunity for investors to accumulate positions. However, the potential for continued upside momentum remains, and long-term investors should continue to monitor the development of the project.

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