VeChain moved in a sideways direction over the past week. It has seen more downside activity than other larger cryptocurrency. Although Bitcoin and Ethereum have experienced some gains, VET’s price continues to decline.
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VeChain is trading at $0.048 as of press time. There has been an 8.9% loss and 34% gain over the past 30-days and two weeks, respectively. But, cryptocurrency is poised to appreciate at major levels.
Analyst Justin Bennett claims this upcoming VET’s price rally could push the cryptocurrency up 40% off its current levels.
An analyst saw a pattern on the weekly charts that was backdated to 2020. At that time, VET’s price was preparing for what ended up as one of its biggest rallies in subsequent months, according to Bennet.
The analyst recommended his audience to “take everything with a grain of salt”. In that sense, he showed the price of VET moving sideways in an inverse “head and shoulders” pattern.
VeChain’s price gained bullish momentum when it broke above the trend line. At the time, VET’s price recorded over 1,000% gains through 2021.
Trending downside from that rally, as the chart shows, VET’s price has returned to below its 2018 trendline, to levels last seen before the previously mentioned rally. Bennett said:
In order for VET to move significantly higher this year, I’m talking $0.10 and higher, it is going to have to get above this trendline. So, this is what I mean by this trendline it’s going to be significant in terms of the overall context of the market.
Bennet said that VeChain had already attempted to move above the trendline but was unsuccessful at $0.070. Until VET’s price can return to those levels, the cryptocurrency is on a downtrend.
Will VeChain Surpass This Critical Level of Performance?
Bennet clarified that VET’s price could see some relief in the short term. There could be a 40% rise in cryptocurrency prices to reach its old resistance levels of $0.070.
VeChain needs to move above $0.050 in order to create a bullish trend. As seen below, on the daily chart, VET’s price needs to see a daily close above this resistance price point. Bennett said:
The market is kinda getting into a point where it’s gonna have to make a decision (…). The set up I’m looking for for VET is going to be a daily close above the $0.050 area (…). Then we are looking at a potential move up to that $0.070 area (…). Although it might not seem like much, the rally is 40%. In my opinion, it’s worth the wait.
Data from Material Indicators shows VET’s price currently sits at $500,000 in bids orders. This could be a support order for VeChain as it moves towards the $0.050 critical resistance zone.
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If VET’s price breaks above those levels, the next resistance levels stand at $0.050 which records less than $200,000 in asks orders.