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VeChain has been moving sideways during the past week, with more downside action than larger cryptocurrencies. While Bitcoin, Ethereum, and others have seen some gains, the price of VET continues to trend downwards.
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As of press time, VeChain trades at $0.048 with an 8.9% and 34% loss during the past two weeks and 30-days, respectively. However, the cryptocurrency could be sitting at crucial levels and poised for major price appreciation.
VET trends to the downside on the daily chart. Source: VETUSDT Tradingview
Analyst Justin Bennett claims this upcoming VETās price rally could push the cryptocurrency up 40% off its current levels.
On the weekly chart, the analyst identified a setup from back in 2020. At that time, VETās 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 ātake everything with a grain of saltā. In that sense, he showed the price of VET moving sideways in an inverse āhead and shouldersā pattern.
As seen below, when VeChain managed to break above that trend line, its price was able to resume bullish momentum into uncharted territory. At the time, VETās price recorded over 1,000% gains through 2021.
Source: Justin Bennett via YouTube
Trending downside from that rally, as the chart shows, VETās 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, Iām talking $0.10 and higher, it is going to have to get above this trendline. So, this is what I mean by this trendline itās going to be significant in terms of the overall context of the market.
VeChain, Bennet added, already attempt to get back above this trendline, but failed near the $0.070 price mark. Until VETās price can return to those levels, the cryptocurrency is on a downtrend.
Can VeChain Break Above This Critical Level?
Bennet clarified that VETās price could see some relief in the short term. The cryptocurrency could be poised for a 40% move back to its previous resistance levels at $0.070.
In order to achieve that bullish move, in lower timeframes, VeChain will need to break above the area around $0.050. As seen below, on the daily chart, VETās price needs to see a daily close above this resistance price point. Bennett said:
The market is kinda getting into a point where itās gonna have to make a decision (ā¦). The set up Iām looking for for VET is going to be a daily close above the $0.050 area (ā¦). Then we are looking at a potential move up to that $0.070 area (ā¦). From $0.050 to $0.070 it may not sound like a lot, but that is a 40% rally. In my opinion, itās worth the wait.
Source: Justin Bennett via YouTube
Data from Material Indicators shows VETās price currently sits at $500,000 in bids orders. These orders could operate as support as VeChain moves into the critical resistance area around $0.050.
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If VETās price breaks above those levels, the next resistance levels stand at $0.050 which records less than $200,000 in asks orders.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.