• VeChain price climbed over 1100% from cup-with-handle breakout in early January.
  • Extended technical conditions limit potential for triple-digit gains from current price.
  • VET mentioned in the 2021 Forbes Blockchain 50.

VeChain price from the weekly perspective looks very bullish, a breakout from a rising channel and a close near the high. No hint of a 40% decline, but that was the case this weekend. It shows there remains a high number of committed speculators around the world, despite the lofty prices. Still, the technicals indicate that the upside is probably limited to a 30-60% gain from the current price.

Vechain price correlation with Bitcoin proves short-lived after big rebound

VET emerged from a cup-with-handle base in early January and has rallied over 1100%, mainly staying in the bounds of a rising channel until last week. The blow-off move of last week has cleared some critical short-term resistance levels but put VET close to the 361.8% Fibonacci extension of the handle correction in late 2020 and within a couple of solid days from the common cup-with-handle measured move target of $0.3824. 

An ideal outcome for bullish speculators is one or two inside weeks to remove the price compression of the significant gains last week, putting it in a better position to notably extend the rally. However, if VET shoots for new highs this week, look for $0.3099 to be a point of resistance, a 30% gain, followed by the cup-with-handle measured move target at $0.3824, providing around a 60% gain for speculators.

A sustained pause in the advance to let the moving averages catch up with price would raise the odds of a test of the 461.8% extension of the handle in 2020 at $0.8325 and carry VET into the orbit of $1.00.

VET/USD weekly chart

Some technical indicators are flashing a sell signal, such as the weekly Relative Strength Index (RSI). Hence, speculators need to be prepared for a sustained correction of the massive gain in 2021. Great support is at the channel’s upper trendline at $0.1705 and then the convergence of the channel’s mid-line with the 10-week SMA around $0.1125.

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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