VeChain Holds Its Ground Against The Bears, Can It Reach $1?
VeChain (VET) has been moving sideways in the daily chart while major cryptocurrencies bleed out in the lower and higher timeframes. In the weekly and monthly chart, VET has an impressive 11.4% and 140% respectively trending opposite to the general market sentiment.
Anonymous trader VeChain Justin shared the chart below via Twitter to show VET is on a bullish trajectory. According to the trader, VET formed an Inverse head and shoulders (H&S) pattern on lower timeframes. Usually an indication of a bearish-to-bullish reversal, this pattern was invalidated but later form an ascending triangle pattern. The trader said the following:
On Step 5 (shown in the chart), need bounce from support to breakout and continue trend. #VeChain trading tightening. This is exciting.
An ascending triangle pattern points to a likely break out in the price action. With resistance at $0.27 and support across the low and mid-range of $0.20. On this price structure the Fibonacci extension point to a target of $0.34. The trader added:
a conservative scenario with lower trendline sitting on the 60 day moving average @ 0.2280 and taking 1-2 days longer to complete. Using wicks and MA here. Anything under 0.2300 seems to be a great buy considering the strength of VeChain.
What Behind VeChain’s Pump?
VET’s strong price action could be supported by 5 main facts as pseudonym researcher “ProfessorSD” said. The high number of corporate partnerships from entities like PriceWaterhouseCoopers (PwC), Groupe Renault, DNV GL, and others, seeking to adopt, implement or create their own solutions and products on top of blockchain VeChainThor.
In addition, the rise of the platform in China. The national government in this country seems to be more open about its support for VET. As evidence by a recent report from the China-backed TV channel Shanghai Media Group (SMG), there is growing interest in blockchain technology and its application on VeChainThor and other networks.
ProfessorSD claims VET’s price to $1 and $3.5 is an “easy target” and added three mote potential bullish factors: a potential listing on Coinbase, 3 partners (BYD, BMW, and Bayer) coming live on this platform, and the emission of a “Vaccine Passport” with Cyprus for European countries.
On an alternative scenario, analyst Justin Bennet said is possible for VET to revisit the higher range of $0.10 and even retest much lower levels if “things get really ugly”. Bennet added:
The alternative is that VET closes today above 20 cents, everything rallies tomorrow, and we all live happily ever after. I’m throwing this short-term bearish scenario out there so you’re prepared just in case.