While the cryptocurrency market began the new weekly trading session on a negative note, VeChain stole the spotlight by rising to a new all-time high a little above $0.08.
VeChain Is on Track for Further Gains
VeChain broke out of an inverted head-and-shoulders formation on Feb. 9. This pivotal moment happened after a two-year-long consolidation period, adding more significance to VET’s upside potential.
After effectively retesting the pattern’s neckline at $0.036 in late February, VeChain formally got in a new bullish cycle from a technical point of view.
Now that this cryptocurrency has risen more than 100% given that the retest, the inverted head-and-shoulders pattern projects that VET could climb up another 660% to hit a target of $0.56.
But first, VeChain will need to close above the 127.2% Fibonacci retracement level at $0.086 to advance further.
VET/USD on TradingView Substantial Resistance Ahead Moving past the overhead resistance will not be as simple despite the bullish momentum that VET has actually seen over the previous 41 hours. Certainly, VET appears to be consisted of in an ascending parallel channel since late December 2020. Each time VET has risen to this technical pattern’s upper limit since then, a rejection occurs that pushes costs to the lower edge. From this point, it tends to rebound, constant with a channel’s characteristics.If such price action repeats itself, VeChain might rise towards the channel’s upper trendline at $0.090, then backtrack to the middle or lower trendline.
Just an everyday candlestick close above this difficulty or the 127.2% Fibonacci retracement level can lead to a parabolic advance towards the 161.8% Fibonacci retracement level at $0.26.
VET/USD on TradingView It deserves noting that VeChain saw a considerable boost in profit-taking quickly after reaching a new all-time high of $0.0835 on Mar. 15. The spike in selling pressure has actually pushed this cryptocurrency down by 11.40% to strike a low of $0.074.
As long as the $0.070 assistance level holds, the odds will favor another upper hand to $0.090 before a significant correction materializes.
Stopping working to hold above this important assistance level might create panic amongst late purchasers and financiers. That occasion could send VET towards the channel’s lower border at $0.058.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.