• VeChain price just released from a well-defined inverse head-and-shoulders pattern on the four-hour chart.
  • VET is struggling with resistance defined by the 61.8% Fibonacci retracement.
  • The fastest-growing network in developing decentralized applications leads crypto market with 250% rebound.

VeChain price just broke out from a bullish formation on the four-chart after a period of intense volatility that was highlighted by a 250% rebound off the May 19 crash lows. The developing breakout is in the early stages, but it is a remarkable turnaround after an 85% decline from the April high.

VeChain price momentum gains traction in a nervous market

Last week, VET was adversely affected by the combination of new Chinese regulations governing cryptocurrencies and a deteriorating outlook for US interest rates. The result was a 51% weekly drop, the most significant weekly decline since prices began in 2018. In fact, VeChain price plummeted over 70% on May 19 before bouncing.

VeChain price has stabilized and responded to the historic sell-off with a 50% gain this week. The gain is nowhere near the largest weekly gains, but it does signify that FOMO is back in VET.

VeChain price has staged a tremendous recovery in just a few sessions, lifting the digital token above the 38.2% and 50% retracement levels of the complete April-May decline. VET is now above the 50 four-hour moving average and is testing the 61.8% retracement at $0.140 after breaking out from an inverse head-and-shoulders pattern earlier today.

If VeChain price overcomes the resistance at the 61.8% retracement, it should not meet any problems until the 200 four-hour moving average at $0.178 and then the 78.6% retracement at $0.189. A high volume breakthrough of these levels will leave VET poised to test the inverse head-and-shoulders measured move target of $0.216, representing a 78% gain from the neckline at the time of breakout.

Additional resistance that could interrupt a VeChain price advance is the May 7 high at $0.260 and then the all-time time at $0.282, printed on April 17. 

VET/USD 4-hour chart

VET/USD 4-hour chart

The fate of VeChain price will revert to a bearish narrative if it falls below the right shoulder low at $0.104.

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.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis