VeChain Technical Analysis: VET/USD eyes $0.02 critical level after breaking trendline resistance

VeChain is among the few cryptocurrencies that are posting consistent gains on Thursday towards the end of the Asian session. July was an impressive month for VeChain investors as it took down several barriers including $0.016 and $0.02. A monthly high was traded at $0.022 which marked the end of the rally in July.

Declines followed towards the end of July in spite of other cryptoassets’ rallies, such as Bitcoin (surged past $12,000) and Ethereum (spiked above $400. VET/USD continued to trim the accrued gains under a descending channel to the extent of refreshing lower levels at $0.016 and $0.014.

On the other hand, the first week of August has been characterized by increased buying activity evidenced by the price action above the moving averages (the 50 SMA and the 200 SMA) and the descending trendline. The price has also made it above the barrier at $0.016 and is looking forward to breaking above the next hurdle at $0.02.

Technically, the cryptocurrency is poised for gains far beyond $0.02 but currently lacks enough volume to support such price action. The MACD points towards continued sideways action as it holds at 0.00055. Recovery above $0.02 is also in jeopardy due to the RSI’s rejection from the overbought. However, it is not over as buyers can still redeem themselves based on the bullish divergence above the MACD.

VET/USD 240' chart