VeChain VET price is consolidating inside a bullish technical formation, suggesting a massive rally shortly. Although the VET price broke out of the pattern, the buyers are not backing this move.
VeChain VET price has been on a consolidation streak since May 19. In this range-bound phase, the VET price has set up four equal highs around $0.142 while creating four higher lows. If these price swing points are connected using trend lines, an ascending triangle forms.
This setup is a bullish pattern level that projects a 63% upswing to $0.235, obtained by adding the distance between the equal highs and the first swing low to the breakout point at a price of $0.142.
Although the VeChain price breached the triangle’s hypotenuse on June 5, it is not a bearish sign. Often, a breakout from a bullish pattern level sweeps the local lows before rallying higher.
However, investors should wait for a 6-hour candlestick chart close above $0.142 to confirm the start of an uptrend.
If such a move were to happen, the Vechain VET price has the potential to surge 30% to the interim resistance level at a price of $0.187. Following the breach of this barrier, market participants can expect the VET price to rally another 26% to tag the lower boundary of a supply zone that extends from $0.235 to $0.266.
On the other hand, if the VeChain price falls below 0.116 for an extended period, investors should exercise caution. A breakdown of the local low at a price of $0.0925 will invalidate the bullish outlook and result in a 30% sell-off to $0.066.
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