VeChain (VET) Has Recently Shown Signs of Breaking Out of Its Prolonged Downtrend

This VET crypto breakout has sparked renewed interest among crypto enthusiasts eager to know the next price target. Currently trading around $0.03170

Technical Analysis Signals Bullish Reversal for VET Price

On X, a chart from TradingView shows VET breaking out of a descending channel, followed by a retest of resistance as support. This suggests a bullish reversal with a short-term price target of $0.10.

This chart shows the 0.236 Fibonacci retracement level being rejected, which is the key resistance at around $0.56. Fibonacci levels are derived from the mathematical sequence and often predict support and resistance zones in trading. In this particular situation, the bull flag pattern that the analyst points out suggests a possible upward breakout for VET, as bull flags typically follow a strong rally and indicate continuation.

Put simply, fibonnaci levels are used to identify key price points where traders believe the price is likely to change direction.

The 0.236 fibonnaci level was around $0.50, which makes sense considering that the price dropped from around $0.11 to lows of $0.0256, fibonnaci was used to measure the drop and then identify the key resistance.

After a drop of around 0.0446, fibonnaci suggests that the first level of resistance should be around $0.0504, and the second one at around $0.056. Both of these levels were tested and the price bounced off of them.

This suggests that fibonnaci is a valid tool for technical analysis and can be used to predict support and resistance levels.

In addition to fibonnaci, the analyst also identified a bull flag pattern, which is a technical pattern that suggests a continuation of a prior uptrend.

A bull flag is formed after a strong rally, in this case, from the lows of $0.0256 to highs of $0.09. After such a strong move, the price usually pulls back to retest the breakout level, which was around $0.05.

From there, the price bounced back up and continued to move higher. The pole of the flag should be at least 1:1 with the flag itself, which is the case here.

The chart also shows that the Relative Strength Index (RSI) is in overbought territory, which suggests that the crypto is due for a pullback. However, the Moving Average Convergence Divergence (MACD) is still in bullish territory, which suggests that the crypto has more room to run.

Overall, this analyst believes that the crypto is bullish and could continue to move higher in the short term.

However, it is important to note that technical analysis can be subjective and there is no guarantee that any particular analyst's predictions will come true.

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