VeChain price gears up for 22% breakout as key support continues to hold

VeChain price appears ready for an ascent as the altcoin continues to hold above key levels of support. The governing technical pattern presented by VET suggests that the token is ready for a bounce of 22%. 

VeChain price steadies ahead of ascent toward $0.164

VeChain price is gearing up for a considerable climb within the prevailing ascending parallel channel on the 4-hour chart. VET has found a reliable foothold above critical levels of support and is now ready for a 22% bounce toward $0.164.

Investors should also note that VeChain price recently sliced above the multi-month descending trend line on October 21, suggesting a bullish outlook for VET. 

The next obstacle for VeChain price is at the middle boundary of the governing technical pattern at $0.140, coinciding with the October 29 high. 

The Arms Index (TRIN), which gauges overall market sentiment, indicates a reading in favor of the bulls, suggesting that there are more buyers than sellers in the market. 

An additional hurdle may emerge for VET price at the resistance line given by the Momentum Reversal Indicator (MRI) at $0.147, corresponding to the October 26 high before reaching the aforementioned bullish target.

VET/USDT 4-hour chart

VeChain price is currently supported by the 21 and 50 four-hour Simple Moving Averages (SMAs) at $0.133. If VET continues to tread above this level, it could give the buyers more confidence in reaching the aforementioned optimistic target at $0.164.

However, if a spike in sell orders emerges, VeChain price would discover its next line of defense at the 78.6% Fibonacci retracement level at $0.132, then at the 100 four-hour SMA at $0.129. Additional selling pressure may push VET down toward the support line given by the MRI at $0.124, near the lower boundary of the parallel channel and the multi-month trend line.

If VeChain price slices below the downside trend line of the prevailing chart pattern, the bullish outlook may be voided.