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Vikram
Mar 23, 2022
by Vikram

VET Technical Analysis: Will Double Bottom Ignite A Breakout Rally?

VET
VET coin price action projects a double bottom pattern at the $0.045 mark with a neckline at $0.055. Will bulls achieve a breakout rally?

Key technical points:

  • VET coin price struggles to surpass the 50-day EMA.

  • In addition, the price action shows a double bottom pattern.

  • Finally, the 24-hour trading volume of VeChain is $288 Million, marking a 10% fall. 

    • Past Performance of VET

    The VET coin price shows a price jump of 20% from $0.045 to $0.055, resulting in the double bottom pattern completion. The rally halts at the resistance confluence of the neckline at $0.55 and the 50-day EMA. The freshly forming daily candle shows higher price rejection from the neckline, projecting the possibility of a downfall. 

    TradingView Chart

    VET Technical Analysis 

    VET coin price action shows a high possibility of the double bottom breakout as the uptrend gains momentum. Moreover, the recent bullish engulfing candlestick of 5.74% shows a boom in buying pressure. 

    The crucial EMAs (50, 100, and 200) project a bearish alignment with the 50-day EMA providing a psychological barrier at the neckline. However, the breakout will initiate a rally to the 200-day EMA at $0.080.

    RSI Indicator: The RSI slope trend sustains the uptrend movement as it crosses above the halfway mark. The trend sustains in the nearly overbought zone and heads higher to the overbought zone at 70%. 

    MACD Indicator: The MACD and signal lines project a rise in buying pressure as the lines maintain an uptrend with a boom in positive histograms. 

    In a nutshell, the VET technical analysis shows an increased possibility of a breakout rally. 

    Upcoming Trend 

    If the bulls outgrow the double bottom pattern, the VET coin price will reach the 100-day EMA close to the $0.065 mark, accounting for a 20% hike. However, closing above the $0.055 mark is a must as a price action confirmation to avoid a fakeout trap. 

    Conversely, the reversal will nullify the breakout rally thesis and result in a free fall to the $0.045 mark.

    Support Levels: $0.045 and $0.040

    Resistance Levels: $0.065 and $0.080

     

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    VET Technical Analysis: Will Double Bottom Ignite A Breakout Rally?
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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