The cryptocurrency market has witnessed a surge in recent days, and VeChain (VET) has not been left behind. The token experienced a significant pump, soaring around 23.65%, sparking questions among investors about its future trajectory. JB delves into the technical analysis to explore the potential of VET reaching $0.025.
Technical Indicators and Price Action Analysis
Analyzing the 1-hour, 1-day, and 1-week timeframes, JB observes a potential completion of a five-wave move to the upside for VET. A retracement has been observed, bouncing off the 61.8% Fibonacci level, providing a temporary support level. Smart money indicators suggest a bullish stance, while short-term EMAs and SMAs indicate a bullish setup.
Short-Term Outlook: Targeting the Z-wave Area
In the short term, VET is targeting the Z-wave area between 2.2 and 2.5 cents. However, a potential retracement to the 50-88.2% range could occur before reaching this target. Some speculate on a larger A-B-C structure, suggesting the possibility of further upside potential.
Daily Chart Analysis: Fair Value Gap and Psychological Resistance
The daily chart analysis signals continued bullish sentiment for VET. A fair value gap exists between 2.4 and 2.57 cents, which could act as a price magnet. Targeting a move towards 2.5 cents is anticipated, with psychological resistance expected at this level.
Weekly Chart Insights: Potential Correction and White Box
The weekly stochastic indicates the potential for a healthy correction, suggesting the possibility of a final drop to the downside. The white box, an area of interest for retracement, lies between 1.43 and 0.843 cents.
Caution and Conclusion: Balancing Upward and Downward Potentials
While the technical analysis suggests the possibility of VET reaching $0.025, it’s crucial to exercise caution. The bear market might not be over, and a potential sharp, quick final drop could occur after a push to 2.5 cents. Overall, the outlook for VET is balanced, considering both upward and downward potentials. Investors should carefully manage their risk and consider their own trading strategies before making any decisions.