VeChain recorded an impressive performance of over 327% in a month after bouncing off its support. Let’s look at the future prospects for VET.
Status of VetChain (VET)
After peaking at $0.05, VeChain came under selling pressure, reversing the crypto trend. Indeed, VET then recorded a drop of more than 66%, gradually bringing its price towards the support of $0.019. Subsequently, VeChain went through a period of consolidation in the form of a double bottom. The crossing of the latter, at the beginning of November, sparked growing buying interest which allowed it, in turn, to benefit from a real expansion, reaching a highest level since April 2022 at $0.08.
At the time of writing, the VET price is trading around $0.069. Slight seller interest appears to have been evident; however, the short, medium and long term trend remains bullish. These words are supported by the fact that the crypto is now above its 50 and 200 period moving averages, which are crossed and trending upwards, as well as above its VWAP and areas of significant value . Concerning the dynamics of VeChain, it has, unsurprisingly, been largely revised upwards, as evidenced by its price and its oscillators. Although this situation is attractive, it is important to remember that strong upward volatility is often a harbinger of a pause or even a correction to come.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on VetChain derivatives (VET/USDT)
Open interest on VET/USDT perpetual contracts has evolved in correlation with the appreciation of its underlying, reflecting a predominantly buying intention on the part of speculators. This dynamic is confirmed by rising funding rates, demonstrating growing confidence in the continued rise of crypto. However, it is important to note persistent selling pressure on market orders, observed via the CVD, which shows a clear divergence from these indicators. Concerning liquidations, a notable peak in liquidations of long positions was recorded. However, this does not seem to have really affected VET, which subsequently reached a new high.
Following VeChain's rise, the heat map of VET/USDT contract liquidations reveals different areas of notable liquidations. Above the current price, we can identify that located around $0.078. Below the current price, we first notice a significant zone below $0.060. Right after that, an area between $0.056 and $0.050 stands out. Finally, further down, the area above $0.042 also appears important. The price approaching these levels could result in a massive triggering of orders, increasing the risk of increased volatility for the crypto. These areas therefore represent a crucial point of interest for investors.
VetChain price forecast
- If the VET price remains above $0.038, a break above $0.080 could be considered. The next resistance to watch, in case the bullish movement continues, would be around $0.085 or even $0.090. Beyond that, targets such as $0.10 or even $0.12. could be achieved, which would represent an increase of more than 73%.
- If VET fails to hold above $0.038, a pullback towards $0.030 or even $0.028 could occur. If the bearish movement continues, the next notable support would be around $0.023, corresponding to a decline of around 67%.
Conclusion
VeChain went through a decline phase followed by consolidation which led to a sustained bullish recovery. The current trend remains favorable, supported by positive technical signals, but caution is required in the face of a possible pause or correction, often associated with high volatility. Thus, it will be essential to carefully monitor the price reaction at key levels to validate or revise current forecasts. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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