Can VeChain Price Break Out of the Falling Channel? Here’s How it Could Happen
The VeChain (VET) price is showing signs of a potential breakout from its falling channel pattern. After weeks of lower lows and a downtrend, the price of VET has found support near the 200-day EMA mark. Now, it has the opportunity to break above the trendline resistance at $0.0400 and reverse the bearish wave.
If the price of VeChain manages to break and close above the $0.04000 mark, it could trigger a short covering rally. At the moment, VET is trading at $0.03596 with a slight intraday drop of 0.10%. It has a monthly return ratio of -5.89% and an annual return ratio of 84.30%.
Market analysts are neutral on VeChain’s potential but suggest that a breakout from the falling channel could lead to outperformance in the coming sessions. Volume remains relatively flat, and buyers need to overcome the hurdle at $0.0400 to gain back control.
Technical indicators are showing a positive divergence, with the RSI curve staying below the midline at 43. VeChain crypto currently ranks 46th in terms of market cap, with a total supply of 85.99 billion and a volume-to-market cap ratio of 0.0176.
Analysts on social media platforms have also expressed optimism about VeChain’s potential. Some believe that VeChain could rally and cross the Fibonacci 38.2% level soon, potentially reaching two or three times its previous all-time high of 0.277.
Increased development activity in the VeChain ecosystem is also contributing to the bullish sentiment. There has been a consistent upmove in development activity, indicating rising demand for the VET crypto. Likewise, the development activity contributors count has spiked over 13% in the past week, highlighting investor efforts to drive gains.
VeChain futures activity is also indicating a short covering trend. Open interest data shows a slight drop of 2.36% to $43.01 million, which could potentially lead to a rebound in the near future.
In conclusion, VeChain (VET) is showing signs of a potential trend reversal and has the potential to deliver gains. However, it is important to note that the views and opinions expressed in this article are for informational purposes only and should not be taken as financial or investment advice.