VeChain’s Breakout Suggests Potential for Continued Momentum Towards Key Resistance Levels

• VeChain [VET] has recently surged, breaking out of a bullish pennant pattern, indicating strong market momentum and potential for further gains.

• With robust trading volume and positive technical indicators, VET is gaining traction among crypto investors and analysts alike.

• According to COINOTAG, “VeChain’s current technical setup shows promise, positioning the asset for significant upside in the near term.”

VeChain’s recent breakout showcases strong momentum and technical backing, signaling potential gains as it approaches key resistance levels.

VET Price Action Analysis: Bullish Pennant Flag Breakout

The recent breakout from the bullish pennant pattern positions VET for potential upward movement, supported by a substantial increase in trading volume of 42.54%. This momentum reflects the market’s optimism as VET approaches critical resistance at $0.057, a level that could open the path to $0.08 if surpassed. Investors should stay vigilant, as any failure to maintain momentum could lead to a retracement.

Source: TradingView

VeChain Technical Indicators: Signals of Continued Strength

A glance at key technical indicators reveals a bullish trend for VeChain. The current Relative Strength Index (RSI) at 51.19 indicates a healthy range for growth without being overbought. Moreover, the moving average (MA) crossover between the 9-day ($0.04943) and 21-day ($0.05593) moving averages further solidifies a positive outlook, providing traders with confidence to anticipate sustained upward momentum.

Source: TradingView

VET Social Dominance: A Slight Decline

Despite the encouraging price surge, VET’s social dominance has seen a decline from recent highs, now standing at 0.1%, down from peaks above 0.7%. This may indicate a temporary setback in social media interest despite positive price activity. However, the drop could also suggest that larger market participants are driving the current breakout, lending more legitimacy to the recent price movements.

Source: Santiment

Open Interest and Liquidations: Rising Confidence

Open interest has climbed by 13.11%, currently at $88.23 million, a clear indicator of growing confidence among derivatives traders, according to Coinglass analytics. The total liquidations show a combined $28.56K in long positions and $646.46 in short positions, indicating a balanced sentiment rather than excessive speculation, which supports the market’s potential for stable growth.

Source: Coinglass

Read VeChain’s [VET] Price Prediction 2024-25

The bullish pennant breakout of VeChain, underpinned by solid volume and favorable technical indicators, aligns with a positive future outlook. With resistance near $0.057, VET is set for potential growth, backed by strong technical and market fundamentals.