VeChain (VET) Price Reclaims $0.030 and Signals a Potential Breakout Rally to the $0.060 Level

VET price reclaims $0.030 and signals a potential breakout rally to the $0.060 level. Derivatives data shows a bullish bias, with a 5.75% rise in open interest.

Top coins continue to rise, boosting the total crypto market capitalization to $3.44 trillion. Among the notable movers, VeChain (CRYPTO: VET) records a massive surge of 8.58%, surpassing the 200-day Exponential Moving Average (EMA).

As the altcoin approaches a crucial resistance level, it hints at a potential inverted head-and-shoulders pattern, setting the stage for a rally above the $0.060 mark.

Chart: TradingView

Breaking Down VeChain Price Analysis

A glance at the daily chart reveals that VeChain’s price action is forming a bullish inverted head-and-shoulders pattern. The neckline of this pattern is located at $0.0327, a key resistance level that coincides with the 23.60% Fibonacci level.

Moreover, this breakout point marks the third consecutive bullish candle after the 200-day EMA breakout. At present, the VET token is trading at $0.030, reclaiming this psychological level.

As the uptrend gains momentum, the daily Relative Strength Index (RSI) line is bouncing off the halfway mark and surpasses the 14-day Simple Moving Average (SMA).

With the RSI line visibly heading higher, the distance from the overbought zone indicates significant room for growth in VeChain. Furthermore, the 200-day EMA breakout increases the likelihood of an uptrend in the 50- and 100-day EMA lines, potentially leading to a positive crossover.

According to Fibonacci levels, a potential pattern breakout will likely carry the token above the 61.80% Fibonacci level at $0.055. This estimate is derived by adding the pattern’s depth to the breakout point, suggesting an 88% rally to $0.061.

On the flip side, if the altcoin fails to break above the 23.60% Fibonacci level, a potential retest of the 50-day EMA at $0.027 could occur.

Looking at Derivatives Data

Amid the sudden surge in bullish pressure, the VeChain derivatives market experiences a significant boost. Open interest has surged by 5.75%, reaching $86.47 million.

Despite the substantial increase, the funding rate remains stable at around 0.010%, showcasing consistent bullish intent.

Interestingly, following the recent price surge, optimism among Binance traders betting on VeChain has risen. According to data from CoinGlass, 64% of Binance accounts trading VET-USDT perpetual contracts hold a bullish stance on the altcoin.

This observation reflects a long-to-short ratio of 1.82 based on the accounts. With this overall bullish bias, traders could potentially witness a leverage-driven rally for VeChain.

However, traders should exercise caution, as the remaining 35% of short positions could command greater capital, which might exert pressure against the long bias.