VeChain price could rally 30% as VET consolidates within a bullish technical formation
|- VeChain price action consolidating between the $0.025 and $0.018 levels has led to the formation of a descending wedge pattern.
- VET could rally 30% because of this bullish technical formation with several indicators to back the theory.
- A decisive daily candlestick close below the $0.018 support level could invalidate the bullish thesis.
VeChain (VET) price has been overly volatile since the year began, recording massive uptrends before the bearish effort canceled all the ground covered, and vice versa. The instability came as the crypto industry navigated a bear market and macroeconomic data in the US. Bitcoin (BTC) led the way in suffering the brute of all these fundamentals, and the rest of the altcoins suffered by correlation, citing Bitcoin dominance.
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VeChain price readies for a 30% upswing
VeChain (VET) price has been posting a series of lower lows and lower highs since February 20, which led to the formation of a falling wedge pattern.
A falling wedge pattern occurs when the price bounces between two downward-sloping, converging trendlines and signals a downtrend's end and an uptrend's beginning. Considered a bullish chart formation, a falling wedge pattern can indicate both reversal and continuation patterns – depending on where it appears in the trend.
In VET's case, if bulls defend the support at $0.0188, VeChain price would have a chance to push through the upper trend line, thus affirming a bullish trend reversal. With that, new buy orders may be entered around the 200-, 50-, and 100-day Exponential Moving Averages (EMA) at $0.021, $0.022, and $0.023, respectively, although the uptrend's confirmation may wait until VET flies above the falling wedge pattern.
The most likely target is the $0.025 seller congestion level, which would denote a 30% upswing from the current level.
The Parabolic SAR supports this bullish outlook after it flipped below VeChain price on May 14. When this trend-following indicator tracks an asset from below, it is interpreted as a bullish sign.
Further, the Awesome Oscillators were bullish, soaked in green, and moving toward the mean line to show buyers were gaining ground.
VET/USDT 1-Day Chart
Nevertheless, traders need to exercise caution as VET could drop below the support confluence between the horizontal line and the lower boundary of the wedge at $0.018. The ensuing downtrend could continue until bulls garner enough liquidity to sustain an uptrend.
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