Verasity Coin (VRA) Secures 143% Gains After Confirming Bullish Technical Pattern

PATNA (CoinChapter.com) — Verasity Coin (VRA) price outpaced several other crypto tokens after confirming a bullish pattern called the falling wedge.

The technical pattern forms when the price fluctuates inside a pair of falling trendlines that would converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside. One key feature of the pattern is that volumes usually decline as the trendlines converge.

The falling wedge pattern indicates that the asset’s downtrend is losing momentum, and buyers are entering the market. The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines.

Per the rules of technical analysis, the VRA crypto token had a price target near $0.0097, a jump of nearly 224% from the breakout level of $0.00299. The Verasity crypto token has achieved nearly 152% of the pattern’s projected gains.

Verasity is a blockchain platform that caters to esports, digital entertainment, and advertising industries. The firm claims to own a proprietary technology that helps eradicate advertising fraud. VRA likely reacted to Verasity’s impressive Q4 report to confirm the bullish pattern.

VRA Price Prediction: Overbought RSI Threatens VRA’s Chances Of A Golden Cross

Meanwhile, long upper wicks on VRA’s daily candles suggest bears are present near the higher price levels. On Jan 20, VRA price spiked 70.4% to form a daily high near $0.0075 before bears pared gains.

Additionally, recent VRA coin price action has left the Verasity crypto’s 20-day EMA (red wave) poised to needle above the 100-day EMA (blue wave) to form a bullish chart pattern called the golden cross. Market participants consider the pattern an indicator of positive investor sentiment.

Hence, a golden cross often attracts buyers to the market, helping the VRA coin price rise to resistance near $0.00682. Furthermore, breaking and consolidating above immediate resistance might raise the VRA token price to $0.00814 before downside corrections pare gains.

However, Verasity’s overbought RSI, currently clocking at 89.12 on the daily chart, might spoil VRA coin bulls’ plans of a continued uptrend. Overbought RSI levels often forecast an impending trend reversal for an asset. As a result, traders consider the pattern a sell signal.

If the overbought RSI prompts traders to start selling, the VRA token price might drop to test support from its 200-day EMA (green wave) near $0.0057. Breaching below immediate support could force the VRA coin price to reach $0.0049 before recovering.