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VeChain Poised for Higher Highs as Resistance Weakens

VeChain (VET) sits at a pivotal point that could see it march towards new all-time highs.

VeChain Poised for Higher Highs as Resistance Weakens
Shutterstock photo by Piotr Swat

Key Takeaways

  • VeChain continues to consolidate in an ascending triangle pattern.
  • While some technical indicators point to a correction, the VET cryptocurrency sits on top of stable support. 
  • Breaking through the $0.031 resistance could see this altcoin's market value surge by 37.50%.

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Ethereum has stolen the spotlight after surging to new all-time highs, but other altcoins such as VeChain (VET) are primed to catch up.

VeChain Waits for Buying Pressure

VeChan has endured a prolonged stagnation period over the past two weeks. While its price has made a series of higher lows since then, the $0.031 resistance level prevents it from advancing further.

Such market behavior seemingly formed an ascending triangle on VET’s 4-hour chart, as a horizontal trendline can be drawn along with the swing highs and a rising trendline along with the swing lows.

An increase in buying pressure around the current price level could push VeChain beyond the overhead resistance at $0.031 to break out of the ascending triangle. If this were to happen, VET’s market value could surge by nearly 37.50% towards $0.043. 

This target is found by measuring the distance between the two highest points of the triangle and adding it to the breakout point. 

VeChain US dollar price chart
VET/USD on TradingView

Despite the high probability of an upward breakout, the TD sequential indicator is about to present a sell signal on VET’s 12-hour chart. 

The bearish formation would likely develop as a green nine candlestick. If validated, VeChain could retrace for one to four 12-hour candlesticks before the uptrend resumes. 

VeChain US dollar price chart
VET/USD on TradingView

IOMAP Suggests Barrier

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model suggests that in the event of a retrace before a potential breakout, the $0.026 barrier might keep falling prices at bay.

Based on the on-chain metric, roughly 520 addresses had previously purchased nearly 2 million VET around this price level. Holders within this range would likely do anything to avoid seeing their investors go into the red. They may even buy more tokens at a discount, propelling prices back up toward the $0.031 resistance. 

If the buying pressure is strong enough, VeChain may even slice through this hurdle and reach the triangle’s target of $0.043 as the IOMAP cohorts show little to no supply barriers ahead.  

In/Out of the Money Around Price by IntoTheBlock
In/Out of the Money Around Price by IntoTheBlock

It is worth noting that a candlestick close below the $0.026 support will jeopardize the optimistic outlook.

Under such circumstances, VeChain’s market value would dive by more than 30% to retest the $0.018 support level. 

At the time of writing, this author held Bitcoin and Ethereum.

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