VeChain (VET), a blockchain platform focused on supply chain management and IoT applications, has witnessed a remarkable surge in recent months, registering a staggering 140% upward movement. This impressive growth has sparked excitement among investors, prompting anticipation for further gains in VET’s price trajectory.
Technical Analysis: A Potential Continued Uptrend
A closer examination of VET’s price charts reveals promising signs of a continued upward trend. On the weekly timeframe, VET has broken above the 200-day exponential moving average (EMA), a significant technical indicator that often precedes sustained price gains. This bullish movement has propelled VET towards a previous high of 3,255.
Fibonacci Retracement Levels Suggest a Retracement and Upward Move
The daily timeframe analysis indicates that VET has reached the macro 1.618 Fibonacci retracement level, commonly associated with a temporary pullback before resuming the overall trend. This suggests a potential retracement to the 0.236 retracement level at 2.64.
Hourly Chart Supports Upward Momentum
The hourly chart provides additional support for the bullish outlook, showing strong support around the 50-day and 50-week moving averages (SMAs). Despite the 1-hour stochastic indicator being overbought, the 4-hour momentum suggests a continued upward move.
Retracement to 2.64, Further Lows at 2.357 and 2.151
JB anticipates a retracement to the 2.64 level, with further potential lows at 2.357 and 2.151 based on Fibonacci retracement levels. These retracements could present buying opportunities for long-term investors.
Weekly Timeframe Anticipates a Corrective Upward Move
The weekly timeframe aligns with the bullish outlook, anticipating a corrective move to the upside, targeting a potential high of 6.763. This move could further validate the upward momentum and attract more investors to the VET ecosystem.
Cautionary Note: Bearish Pressure Around the 200 EMA
While the overall sentiment is positive, investors should exercise caution in the volatile cryptocurrency market. There is a possibility of a bearish fight around the 200-week EMA on the weekly chart, which could temporarily dampen the upward momentum.
Long-Term Outlook: Downside Move and Potential Accumulation Opportunities
In the long term, a downside move is anticipated, possibly testing or breaking the bear market low for potential accumulation opportunities. This could further strengthen VET’s foundation and prepare it for a stronger uptrend in the future.
Conclusion: VET’s Potential for Continued Growth
VET’s recent price action and technical analysis suggest that the cryptocurrency could experience further upside movement in the near term. However, investors should remain cautious and adopt a risk-averse approach in the volatile cryptocurrency market. The long-term outlook also involves a potential downside correction, which could present opportunities for accumulation.