VeChain (VET) Price Analysis: Inverted Head-and-Shoulders Pattern Promises 89% Upside

VeChain (VET) price is eyeing a major breakout rally if it reclaims the $0.032 neckline.

The price of VeChain (VET) has pulled back slightly after testing the 38.2% Fibonacci level, leading to an intraday pullback of 4.65%. As Bitcoin continues to decline below $103,000, altcoins have struggled to maintain their gains.

This move has also led to a nearly 10% decline in the VeChain price, marking a short-term pause in the breakout rally. As the market recovers, the major cryptocurrency is now showing signs of strong underlying potential, which could see the short-term pullback reverse and rally toward $0.050.

As the broader market continues to recover, the price of VeChain surged by 27% last week. This move confirmed the breakout of a falling channel pattern, which has been in place since November 2022, and signaled a renewed bullish trend in the market.

The uptrend also led to a brief test of the 200-day Exponential Moving Average (EMA), which had not been touched since December 2022. This move was significant as it could mark the final buyers in the market exiting their positions at higher levels, leading to increased selling pressure.

However, the increased selling pressure at higher levels has led to a pullback in the VET price to $0.029, with an intraday pullback of 4.65%.

At present, the altcoin is holding above the 100-day EMA, and the short-term surge in bullish influence is indicated by the positive crossover between the 50 and 100 EMA lines.

However, the bearish reversal from the 38.20% Fibonacci level at $0.032 is signaling a negative crossover between the MACD and signal lines.

This divergence in the technical indicators may suggest a contrary viewpoint on the price trend.

Looking at the long-term price action, it appears that VeChain is forming an inverted head-and-shoulders pattern, with the neckline at $0.032.

The price has pulled back from the 38.20% Fibonacci level at $0.032, and if it can rebound and challenge the neckline, a breakout could send the price of VET soaring.

According to the pattern, a breakout could lead to an 89% rally, targeting the $0.061 level.

This move would also coincide with the 78.60% Fibonacci extension level at $0.058, further highlighting the potential for a significant price increase.

On the downside, if the bulls fail to hold the price above the 23.60% Fibonacci level at $0.026, the bullish pattern will be invalidated.

This failure would increase the likelihood of a pullback toward the $0.023 support level.