- VeChain is up 214% since the beginning of the year and it appears to have more room to grow
- Indeed, VET’s price action appears to be forming a descending triangle that estimates a 34% upside target
- A spike in the buying pressure behind this token could see it rise to a new yearly high of over $0.022
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After an impressive four-month rally, VeChain appears to have taken a breather. Different metrics say that’s about to change.
VeChain Sits on the Brink of a Breakout
VeChain has had a great year thus far, despite the chaos caused by the ongoing pandemic. The VeChainThor technology is being tested in a wide range of industries, providing solutions to real-world problems. Even Bayer, one of the largest pharmaceutical companies on the planet, announced that it would implement VET’s traceability solution to make supply chain management more efficient, practical, and cost-effective.
The strides the VeChain Foundation has made to achieve the adoption of its technology are attracting notice. Investors are giving VET their vote of confidence, as prices demonstrate. The blockchain-based supply chain management token is up 214% since the beginning of the year, and it appears to have more room to grow.
Indeed, VET’s price action appears to be forming a descending triangle over the past couple of weeks. A horizontal trendline is forming along the swing lows while a descending trendline is forming along the swing highs. By measuring the distance between the highest points of this technical formation and adding it to the breakout point, it anticipates an upside target of 34%.
Nonetheless, the TD sequential indicator suggests that VeChain’s price will remain contained within the triangle for an extended period before it finally breaks out. This technical index presented a sell signal in the form of a green nine candlestick on VET’s 4-hour chart. The bearish formation can lead to a one to four candlesticks correction or the beginning of a new downward countdown.
It is worth mentioning that in the last few weeks each time the TD setup presented a sell signal around the hypothenuse of the triangle, prices retraced to the x-axis before bouncing back. If history repeats itself, VET may drop to the $0.0155 support level and then rebound to overhead resistance—and possibly breakout.
Despite the bullish outlook that VeChain currently presents, investors must be aware of the strength of the x-axis of the descending triangle. Breaking through this level of support would jeopardize the optimistic view and lead to further losses. On its way down, this altcoin may find support around the $0.01 hurdle.
In either case, setting up stop and limit orders along the way will position a trader to take advantage of VeChain’s potential upside.
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