While the cryptocurrency market kicked off the new weekly trading session on a negative note, VeChain stole the spotlight by rising to a new all-time high slightly above $0.08.
VeChain Is on Track for Further Gains
VeChain broke out of an inverse head-and-shoulders formation on Feb. 9. This pivotal moment occurred after a two-year-long consolidation period, adding more significance to VET’s upside potential.
After successfully retesting the pattern’s neckline at $0.036 in late February, VeChain officially entered a new bullish cycle from a technical perspective.
Now that this cryptocurrency has risen more than 100% since the retest, the inverse head-and-shoulders pattern projects that VET could climb another 660% to hit a target of $0.56.
But first, VeChain will have to close above the 127.2% Fibonacci retracement level at $0.086 to advance further.
VET/USD on TradingViewSignificant Resistance Ahead
Moving past the overhead resistance will not be as easy despite the bullish momentum that VET has seen over the past 41 hours.
Indeed, VET appears to be contained in an ascending parallel channel since late December 2020. Each time VET has risen to this technical pattern’s upper boundary since then, a rejection occurs that pushes prices to the lower edge. From this point, it tends to rebound, consistent with a channel’s characteristics.
If such price action repeats itself, VeChain might surge towards the channel’s upper trendline at $0.090, then retrace to the middle or lower trendline.
Only a daily candlestick close above this hurdle or the 127.2% Fibonacci retracement level can lead to a parabolic advance towards the 161.8% …
Story continues on Crypto Briefing
Menu