- VeChain is showing a strong bullish setup with an inverted head-and-shoulders pattern, signaling a potential 89% rally to $0.061 if it breaks above the key $0.032 neckline.
- However, a drop below the $0.026 support level could invalidate this outlook and lead to further downside.
VeChain (VET) is gearing up for a potential breakout that could catapult its price by nearly 89%, signaling a strong bullish reversal amid a shaky altcoin market. Let’s dive into the technical factors behind this promising setup and what it could mean for traders and investors.
VeChain Current Market Situation: A Brief Pullback
Following a sharp 27% surge last week that revived hope in the broader crypto market, VeChain now faces a short-term pause. The altcoin struggled to maintain momentum after testing the key $0.032 level, pulling back to around $0.029—a roughly 10% drop coinciding with Bitcoin’s slip below $103,000.
Despite this minor setback, VeChain’s price remains above the 100-day Exponential Moving Average (EMA), hinting that the underlying bullish momentum is far from over. A potential positive crossover between the 50 and 100-day EMAs could further boost VeChain’s upward prospects.
The Bullish Pattern to Watch: Inverted Head-and-Shoulders
One of the most compelling signals in VeChain’s chart is the formation of an inverted head-and-shoulders pattern, a classic indicator of a trend reversal from bearish to bullish. The critical neckline for this pattern sits at $0.032. If VET manages to reclaim and hold above this level, it could trigger a powerful breakout rally.
The pattern suggests that VeChain might rally as high as $0.061, marking an 89% upside from current levels. This price target also aligns closely with the 78.60% Fibonacci retracement level near $0.058, reinforcing the strength of this bullish outlook.
Risks and Support Levels: What Could Go Wrong?
While the bullish case looks promising, traders should watch for the key support at the 23.60% Fibonacci retracement level around $0.026. Falling below this could invalidate the bullish pattern and increase the chances of a deeper pullback toward $0.023.
Additionally, technical indicators like the MACD show mixed signals, with a possible bearish crossover hinting at short-term resistance. This means cautious investors should wait for a clear breakout confirmation before jumping in.
VeChain’s Path Forward
VeChain’s current price action presents a compelling opportunity for investors who believe in its strong fundamentals and technical setup. If the altcoin can break above the $0.032 neckline, it may well embark on an exciting rally toward $0.061, offering nearly 90% gains.
However, the near-term is uncertain, and monitoring key support levels is crucial to avoid getting caught in a potential downturn. For now, VeChain remains a crypto asset to watch closely as it balances between a bullish breakout and a short-term pullback.
