- VeChain (VET) breaks the descending trendline, sparking optimism.
- Potential 24% rally if VET maintains momentum.
- Daily close below $0.0204 invalidates the bullish scenario.
VeChain (VET) has broken above a descending trendline, which has sparked optimism among crypto enthusiasts. Meanwhile, analysts believe that this breakout is the beginning of the highly-awaited significant growth in the price of VET.
# VET Descending Channel Formation in 12H Timeframe ✅https://t.co/D6adSbHmXz
A breakout is anticipated soon📈#Crypto #VET #VETUSDT #DeFi #Layer2 pic.twitter.com/ZaoS5AgGUl— CryptoBreakout_trade (@breakout_expert) July 13, 2024
The Breakout and Technical Analysis
VET formed a descending channel in the 12-hour time frame, indicating a bearish trend. However, the recent breakout above the trendline suggests a potential reversal. The breakout occurred earlier this week, and VET currently consolidates around $0.0263.
For sideline buyers eyeing an entry point, the range between $0.0247 and $0.0239 is crucial. Waiting for a pullback to this breakout zone could provide an opportunity to accumulate VET. If the cryptocurrency finds support within this range, it may rally significantly.
Price Targets and Indicators
Should VET maintain its momentum, a rally of up to 24% is possible. The 61.8% Fibonacci retracement level at $0.0303 serves as a key target. This level is measured from VET’s swing high of $0.0366 on June 6 to its swing low of $0.0201 on July 5.
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The Relative Strength Index (RSI) indicator on the daily chart is also showing positive signs, breaking above the neutral level of 50. Additionally, the Awesome Oscillator (AO) is on its way to doing the same. These momentum indicators align with the bullish thesis, potentially providing tailwinds for the recovery rally.
However, caution is necessary. If VET’s daily candlestick closes below $0.0204 (the weekly support level), the bullish scenario would be invalidated. Such a move would create a lower low on the daily timeframe, potentially leading to a 6% decline, revisiting the November 22, 2023 low of $0.0192.
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