VeChain (VET) is at a turning point that could give momentum to new all-time highs.
- VeChain continues to consolidate in the ascending triangle.
- While some technical indicators indicate a correction, VET is at the top of stable support.
- A break of the $ 0.031 resistance could lead to a 37.50% rise in the market value of this altcoin.
Ethereum has distracted attention with its all-time high, but other altcoins like VeChain (VET) are preparing to renew their highs as well.
VeChain is waiting for buyer pressure
VeChan has gone through a long period of stagnation over the past two weeks. Although its price has reached a series of higher lows since then, the $ 0.031 resistance level does not allow for further movement.
This market behavior would appear to have formed an ascending triangle on the 4-hour VET chart, as the horizontal trend line can be drawn along with swing highs and an uptrend line along with swing lows.
Increased buying pressure around the current price level could push VeChain beyond the $ 0.031 upper resistance and break out of the ascending triangle. If that were the case, the market value of VET could rise nearly 37.50% to $ 0.043.
This target can be found by measuring the distance between the two highest points of the triangle and adding it to the breakout point.
Despite the high likelihood of a breakout to the upside, the consecutive TD indicator is about to present a sell signal on the 12-hour VET chart.
The bearish formation is likely to develop as a green nine. If confirmed, VeChain may retrace one to four 12-hour candles before the uptrend resumes.
The IntoTheBlock In / Out of the Money Around Price (IOMAP) model suggests that in the event of a pullback before a potential breakout, support at $ 0.026 could contain the price drop.
According to the on-chain metric, approximately 520 addresses previously purchased about 2 million VET at this price level. Holders in this range are likely to do anything to keep their investors in negative territory. They may even buy more discounted tokens, pushing prices towards the $ 0.031 resistance.
If buying pressure is strong enough, VeChain could even overcome this hurdle and hit the $ 0.043 triangle target, as the IOMAP cohorts show little or no road ahead.
It is worth noting that closing the candle below the support of $ 0.026 would jeopardize the optimistic outlook.
Under such circumstances, the market value of VeChain will drop more than 30% to retest the $ 0.018 support level.