VeChain has been moving sideways during the past week, with more downside action than larger cryptocurrencies. While Bitcoin, Ethereum, and others have seen some gains, the price of VET continues to trend downwards.
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As of press time, VeChain trades at $0.048 with an 8.9% and 34% loss during the past two weeks and 30-days, respectively. However, the cryptocurrency could be sitting at crucial levels and poised for major price appreciation.
Analyst Justin Bennett claims this upcoming VET’s price rally could push the cryptocurrency up 40% off its current levels.
On the weekly chart, the analyst identified a setup from back in 2020. At that time, VET’s price was preparing for what ended up as one of its biggest rallies in subsequent months, according to Bennet.
The analyst recommended his audience to “take everything with a grain of salt”. In that sense, he showed the price of VET moving sideways in an inverse “head and shoulders” pattern.
As seen below, when VeChain managed to break above that trend line, its price was able to resume bullish momentum into uncharted territory. At the time, VET’s price recorded over 1,000% gains through 2021.
Trending downside from that rally, as the chart shows, VET’s price has returned to below its 2018 trendline, to levels last seen before the previously mentioned rally. Bennett said:
In order for VET to move significantly higher this year, I’m talking $0.10 and higher, it is going to have to get above this trendline. So, this is what I mean by this trendline it’s going to be significant in terms of the overall context of the market.
VeChain, Bennet added, already attempt to get back above this trendline, but failed near the $0.070 price mark. Until VET’s price can return to those levels, the cryptocurrency is on a downtrend.
Can VeChain Break Above This Critical Level?
Bennet clarified that VET’s price could see some relief in the short term. The cryptocurrency could be poised for a 40% move back to its previous resistance levels at $0.070.
In order to achieve that bullish move, in lower timeframes, VeChain will need to break above the area around $0.050. As seen below, on the daily chart, VET’s price needs to see a daily close above this resistance price point. Bennett said:
The market is kinda getting into a point where it’s gonna have to make a decision (…). The set up I’m looking for for VET is going to be a daily close above the $0.050 area (…). Then we are looking at a potential move up to that $0.070 area (…). From $0.050 to $0.070 it may not sound like a lot, but that is a 40% rally. In my opinion, it’s worth the wait.
Data from Material Indicators shows VET’s price currently sits at $500,000 in bids orders. These orders could operate as support as VeChain moves into the critical resistance area around $0.050.
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If VET’s price breaks above those levels, the next resistance levels stand at $0.050 which records less than $200,000 in asks orders.