Key Takeaways:
- VeChain token jumped 15% in three days.
- The rally is backed by a bullish setup.
- Will the serge be short-lived, considering the bearish factors?
YEREVAN (CoinChapter.com) – VeChain (VET) stood at $0.025 in the New York session on Feb 16, after a 15% uptrend in the previous three days. However, the VET coin price target set by a bullish setup met a challenging bearish factor. Here are more details.
Falling wedge promises VeChain token a 55% kick.
The altcoin traded within a bullish pattern dubbed the ‘falling wedge‘ since May 2022. The latter entails two falling converging trendlines with a significant mid-range. The setup envelops the price action, preventing sharp moves in any direction and taking the asset value incrementally lower.
However, the falling wedge is a reversal pattern. Thus, it predicts a bullish bias flip once the asset breaks above the resistance. VET token did just that on Jan 26, retesting the said resistance as support in several consecutive sessions. Furthermore, the setup predicts a bullish break equal to the maximal wedge height, pinning the target VET price at $0.040, or 55% higher than the current value.
Also read: MATIC Price Rallies 22% As Polygon Announces Date For zkEVM Launch.
Crypto analyst @TeddyCleps commented on VET’s prospects, noting a significant resistance conquer on the weekly chart as well.
VET is that dinosaur that never died and will continue to push cycle to cycle – Broke key downwards resistance – Bounce from support- A long long way to any substantial resistance.
commented the analyst.
VET flashes bearish divergence
Despite the bullish prediction, VET entered a sideways consolidation phase after the breakout, struggling below a former resistance of $0.026. Additionally, the VET token’s bullish confidence also depends on broader market factors, including the Bitcoin price, which pushed VeChain up in the previous sessions. Thus, on the flip side, if BTC loses momentum, the VET coin is likely to follow.
Meanwhile, the VeChain token also flashed conflicting bearish technicals, which could hinder VET’s attempts to reach the falling wedge target.
Also read: Bitcoin Eyes $25K amid $86M Short Liquidations – But Macro Headwinds Persist.
The VET daily chart flashed a bearish relative strength index (RSI) divergence, which threatened to pare VeChain’s recent gains. In detail, while the price action printed higher lows, the RSI (graph at the bottom) printed lower allows. Such dissonance is typically indicative of a looming bias reversal and could take the VET price lower in the upcoming sessions.
Should the digital asset follow the bearish path, the closest short-term support targets would stand at $0.023 and possibly $0.021.
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