• VeChain price has been consolidating in an ascending parallel channel for over the past two months.
  • The pattern’s lower trendline cushioned the recent 42% crash.
  • Bouncing off this support level now suggests the possibility of a 75% upswing towards the channel’s upper trendline at $0.084.

VeChain price marches towards greener pastures after rebounding from a critical support barrier.

VeChain price resumes its bull rally

VeChain price has been forming a series of higher highs and higher lows since late December 2020. By connecting these pivot points using trendlines, an ascending parallel channel can be spotted on VET’s 12-hour chart. 

This technical formation has a bearish bias, which results in a downward breakout in price equal to the channel’s height added to the breakout point. However, a sudden spike in bullish momentum has resulted in a V-shaped recovery

Now, VeChain price eyes a higher high and could move past its previous all-time high of $0.061.

Supporting this bullish thesis is the Moving Average Convergence Divergence (MACD) indicator, which shows an increase in buying pressure seen in the form of green histograms above the zero-line. It presented a bullish crossover on March 2, where the 26 twelve-hour exponential moving average moved above the 12 twelve-hour exponential moving average, which is another positive sign.

VET/USDT 12-hour chart

VET/USDT 12-hour chart

Investors should note that the potential 75% bull rally towards the channel’s upper boundary at $0.084 comes with significant hurdles. Two levels, in particular, could deter the upswing in VeChain price. 

These levels include the $0.050 resistance, which coincides with the 78.6% Fibonacci retracement level, and the previous all-time high at $0.061.

Rejection at these barriers could be fatal and result in a pullback. Nonetheless, a 12-hour candlestick close below the ascending parallel channel’s lower trendline at $0.040 will invalidate the bullish thesis. In such circumstances, VeChain price could pull back by 15% towards 38.2% Fibonacci retracement level at $0.034.

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.

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