VeChain (VET) Token Seemed to be Expecting a Double Breakout

Over the past few months, VeChain [VET] has lost a substantial amount of its market share because of price declines.

VeChain [VET] lost a lot of market share in the past few months as prices fell. But the current bullish market condition has helped it recover a bit.

Despite the recent bearishness, there was a double breakout that the token seemed to be expecting.

Recent Breakout Anticipations For VeChain

The token witnessed an impeccable growth last week as its value surged by over 27%. The past 24 hours also aligned with investors’ interest because of a more than 9% price hike. At the time of writing, VET was trading at $0.03267.

In the meantime, World Of Charts, a popular crypto analyst, posted a tweet pointing out that VET had broken above a falling wedge pattern, allowing it to grow sharply over the past few days. This surge was pushing the token towards yet another horizontal and diagonal resistance of a multi-year pattern.

The triangle pattern emerged in 2020, and since then, VeChain has been consolidating inside it. A breakout above that level could spark a massive rally in the upcoming altcoin season.

In fact, if things fell in place, it won’t be surprising to see VET retesting its 2024 high again before the year ends.

Problems That Might Delay The Breakout

Investors might have to wait longer for the breakout, as a few bearish metrics appeared. First and foremost, VET’s trading volume dropped by 44% in the last 24 hours while its price surged.

A decline in the metric indicates that there are chances of the ongoing price trend changing. VeChain’s Open Interest (OI) increased sharply, indicating investors’ confidence.

However, since the metric increased drastically, it might not be able to sustain the momentum and drop in the coming days.

Additionally, at the time of writing, VeChain’s fear and greed index was in the “extreme greed” phase. Whenever the metric reaches this level, it suggests a price correction.

The token’s Relative Strength Index (RSI) was also about to enter the overbought one. This could impact market sentiment, causing investors to sell.

It thus won’t be a surprise to see a pullback within the $0.028-$0.026 range.

The above is the detailed content of VeChain (VET) Token Seemed to be Expecting a Double Breakout. For more information, please follow other related articles on the PHP Chinese website!