- VeChain price is likely to witness a sharp move to the upside, technicals suggest.
- The RSI indicator shows strength while AO follows in its footsteps, revealing a possible breakout rally to $0.0178.
- Invalidation of the bullish outlook will occur if VET flips the $0.0147 support level into a resistance.
VeChain price saw an 11% daily candlestick on Tuesday, in what looks as the first sign of a bullish resurgence for the blockchain’s token. If bulls are persistent, VET could bounce off a key support level and trigger another rally.
VeChain price prepares for next leg high
VeChain price swept the August 17 low on September 12, but the dive kickstarted an 11.59% rally. This move retested VET’s long-standing downtrend, which has created five lower highs since July 1. Investors can expect a minor pullback to the immediate support level at $0.0156, which is a key buying area.
The Relative Strength Index (RSI) has already flipped above the mean level, indicating a strong comeback from bulls. Furthermore, the Awesome Oscillator (AO) is receding from below the zero line, suggesting a decline in bearish momentum. A flip of the zero line would suggest the presence of buyers.
Hence, market participants can expect a bounce from the $0.0156 support floor that could propel VeChain price by 13% to retest a key resistance level at $0.0178. Beyond this hurdle, the $0.0204 and $0.0222 are other key barriers that investors can focus on.
VET/USDT 1-day chart
While the outlook for VeChain price is bullish, a breakdown of $0.0156 support floor would be the first sign of failing buyers. In such a case, market participants should focus on the $0.0147 barrier.
A daily candlestick close below this level that flips it into a resistance level would invalidate the bullish thesis for VET. In such a case, a revisit to the $0.0091 support – roughly 37% lower than the $0.0147 barrier – is likely.
Also read: Crypto miners debate $500k Bitcoin fee refund to paxos for 'fat-fingers' error
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck launches MarketVector “MEMECOIN” index to track BONK, FLOKI, DOGE, PEPE, WIF and SHIB tokens
While Bitcoin ETFs track BTC price, $90 billion asset manager VanEck has launched a separate index, christened MEMECOIN, to track the performance of the sector’s best and worst performers.
Ethereum could experience bullish run, ETH ‘ultrasound’ money narrative at risk
Ethereum price action on Wednesday shows it could be gathering momentum for a rally as a recent report from CryptoQuant reveals its ultrasound money narrative is at risk.
President Biden threatens crypto with possible veto of Bitcoin custody among trusted custodians
Joe Biden could veto legislation that would allow regulated financial institutions to custody Bitcoin and crypto. Biden administration’s stance would disrupt US SEC’s work to protect crypto market investors and efforts to safeguard broader financial system.
AI tokens could rally following growth in NVIDIA's stock
While some predicted the Bitcoin halving would be the breaking point for a new bull cycle, a recent rally in AI tokens could see them lead the altcoin season. The continuous integration of AI-backed tokens has increased awareness of the possibilities that await the general blockchain ecosystem with them on board.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.