VeChain Spikes 9% On A Red Day But Is Still Inside A Symmetrical Triangle
VeChain price spiked by 10% today, but found resistance at its symmetrical triangle. Can it make a breakout and from which side?
Key Takeaways
- VeChain spikes 9% despite overall market downturn.
- Still within symmetrical triangle; breakout direction uncertain.
- Potential for either new high or further depreciation.
In an unexpected twist amidst a broadly bearish day in the cryptocurrency market, VeChain has managed to buck the trend by spiking an impressive 9%. However, despite this notable gain, VeChain remains confined within the technical boundaries of a symmetrical triangle pattern.
Does this uptick signal the potential for a breakout, or is it merely a temporary surge within ongoing consolidation?
VET Price Analysis
On February 28, the price of VET reached a high of $0.055 as it was in a significant uptrend from $0.015 on September 10 last year. Since this was the end of its five-wave advancement, VET proceeded by a 33% decline to a low of $0.036 on March 20.
Since then, it attempted to regain momentum but only made a lower high of $0.048 on March 28. This level was retested today as well, proving resistance is still present. Two possibilities are ahead as the price is still inside a symmetrical triangle.
We can see a breakout to the upside, the start of a new advancement, or today’s interaction will end as a rejection, leading to a more significant downturn. In the bullish scenario, there is still more room for the upside for its higher degree wave 5, with the price target set at $0.060.
What Do Technical Indicators Say?
However, should we see a reversal to the triangle’s support, a breakout below $0.040 would indicate that the higher degree wave 4 still hasn’t ended? In this case, our target would be ascending support around $0.033.
The daily chart Relative Strength Index is at its midpoint at 50% and doesn’t provide much indication of the following potential price direction. On the other hand MACD is signaling a starting uptrend. However, as in the case of symmetrical triangles, the likelihood of a breakout is still equal on both sides.
We first need to see what happens at its support/resistance before anticipating another high or further depreciation.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
