thecryptobasic.com 01 October 2024 12:46, UTC

With a failed bullish cycle seeking redemption near the 50-day EMA, can VeChain (VET) achieve a breakout?

During the bearish phase, the price of VeChain dropped from $0.051 to $0.019, marking a significant decline of 61.15% between March 3 and September 7. However, following a broader market recovery, VeChain is back in play, challenging its overhead resistance trend line.

Currently, the price has dipped back to the 50-day EMA, maintaining hopes for a breakout. Will the broader market recovery fuel VeChain’s potential breakout?

VeChain Crosses $0.023

On the daily chart, VeChain’s price action indicates a continuing downtrend. This bearish phase began with a rejection near the psychological $0.050 mark, leading to a downturn from $0.051.

This increasing bearish pressure has created both primary and secondary resistance trend lines, resulting in a bearish alignment among the crucial daily EMAs. At present, the 50, 100, and 200-day EMAs exhibit a bearish configuration.

Moreover, changes in underlying dynamics have formed a declining support trend line, completing a falling channel pattern. Based on Fibonacci levels, the recent bullish cycle from $0.0199 tested the overhead resistance trend line close to the 73.60% Fibonacci level at $0.02736.

The 23.60% Fibonacci level, located just below the 200-day EMA, adds to this confluence of resistance. The high selling pressure around these crucial resistance levels caused the recent bullish cycle to falter. Specifically, it resulted in a drop below the 100-day EMA, a 5.56% decline on Monday.

VeChain Breakout Chances

Despite the recent drop, VeChain has managed to maintain its position at the 50-day EMA, experiencing an intraday increase of 2.52%. Currently trading at $0.0249, it has formed a bullish piercing candle.

The possibility of a breakout remains as the altcoin holds above this dynamic support. A bullish rally above the 23.60% Fibonacci level could challenge the primary resistance trend line above $0.030. Conversely, critical support levels for VeChain are positioned at $0.02378 and $0.020.