VET’s Impending Breakout Could Confirm the Upward Trend

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In Brief
  • VET is trading between resistance and support at $0.0155 and $0.00095, respectively.

  • The price is in the process of breaking out from a descending resistance line.

  • Such a breakout would indicate that the price has begun a new upward trend.

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VeChain (VET) has been increasing since it reached a low on Sept. 7. A breakout above the current resistance area would indicate that the price has begun a new upward trend.



Retracement or Breakout?

The VET price has been decreasing since Aug. 9, when it reached a high of $0.022. During the decrease, the price has made several lower highs, creating a descending resistance line in the process. However, the price bounced after it reached a low of $0.011 on Sept. 7 and has been increasing since. At the time of writing, it was about to break out from this resistance line.

The line also coincides with the $0.0155 resistance area, so a breakout above it and its validation as resistance would confirm that the trend is bullish. Conversely, the closest support area is found at $0.0095.

VET Chart By TradingView

Technical indicators are turning bullish, even though they have yet to confirm the upward trend:

  • The MACD is increasing but has not crossed into positive territory yet.
  • The RSI has crossed above 50 but has not generated any bullish divergence.
  • The Stochastic oscillator is very close to making a bullish cross.

A bullish cross and a positive MACD would confirm that the trend is bullish.



VET Chart By TradingView

Wave Counts

Cryptocurrency trader @Crypto618 has a bearish outlook for VET, in which the price has completed a long-term bullish formation and will now move downwards for the foreseeable future.

Source: Twitter

However, the movement since July 8 is very akin to an A-B-C correction (in orange below), which would suggest that the price reached a bottom on Sept. 4. The fact that the A:C waves have a 1:1.61 ratio makes it very likely that the correction has come to an end.

 

In addition, the ensuing movement looks impulsive, possibly signaling the beginning of an upward trend. Therefore, unless the $0.11 low is taken out, it seems that VET has begun a new bullish impulse.

VET Chart By TradingView

To conclude, it is likely that VET has begun a new upward trend. A breakout above the $0.015 resistance area would confirm that the price has done so.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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