VeChain (VET) Begins Upward Move After Deviation Below Range Low

Deviation Below Range Low

VET has been decreasing alongside a descending resistance line since reaching a high of $0.0230 on Aug 9.  On Oct 18, the price broke out from the resistance line but proceeded to fall shortly afterward, touching a low of $0.0088 on Nov 4. While this appeared to cause a breakdown from the $0.01 support area, the price immediately reclaimed the support level and has been moving upwards since, validating the area as support once more. If VET continues to rally, the next significant resistance area would be at $0.016.

Cryptocurrency trader @CryptoMichNL outlined a VET chart, stating that the price could increase all the way to $0.02.

While the price is likely to face resistance at $0.016, an upward move all the way to $0.012 seems to be on the cards.

Technical Indicators Support Rally

Technical indicators on the daily time-frame are bullish. All three of the: MACD, RSI, and Stochastic Oscillators are increasing, and the latter is close to making a bullish cross. Furthermore, the bullish candlestick on Nov 13, which validated the $0.01 area, supports this possibility.

The shorter-term 6-hour chart shows a symmetrical triangle, which is a neutral continuation pattern. Since it is coming after an upward move, a breakout is likely, fitting with the rest of the readings from technical indicators. A breakout that travels the entire height of the pattern would take VET to $0.0135, the closest minor resistance area.

Wave Count

Since the previous Aug 9 high, the VET price has completed a bearish impulse (shown in black below). If the count is accurate, what follows is a corrective structure, likely placing VET in the A wave. If correct, a preliminary target for the top of the move would be at $0.016, the 0.5 Fib level of the entire decline. However, as the structure develops, a more accurate target will emerge.

Conclusion

To conclude, the VET price is likely to continue moving upwards towards the resistance areas outlined above. Once the price breaks out from the current symmetrical triangle, the rate of increase should accelerate. For BeInCrypto’s previous Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto