VeChain (VET) Price Breaks Long-Term Pattern, What Next?
The VeChain (VET) price has broken out of a long-term pattern, marking the beginning of a new uptrend. However, short-term indicators suggest it may undergo a correction before continuing to rise.
Breakout of the Long-Term Pattern
The VeChain (VET) price has been trading within a descending parallel channel since May 2022. This is a bullish pattern that often leads to a breakout in most cases.
Indeed, after 80 weeks moving inside the channel, the VET price broke above the channel in the week from December 11 to 17. In the following week, the VET price confirmed the channel’s resistance as support (green arrow), signifying the start of a new uptrend.
The weekly RSI (Relative Strength Index) has entered the overbought zone and is trending upward, supporting the continuation of the uptrend.
Since the parallel channel has existed for 80 weeks, the post-breakout movement could be strong.
Therefore, the VET price may rise to the next resistance level at $0.045, which is 30.72% higher than the current price.
The daily chart indicates that the VET price may undergo a correction in the coming days. This is due to the bearish divergence in the daily RSI.
This divergence occurs when the price rises, but the RSI decreases, typically followed by a corrective phase.
Additionally, the RSI has broken below the recent low and is sloping downward, supporting the possibility of a correction.
Thus, the VET price is likely to correct towards the nearest support level at $0.03.
The most likely scenario suggests that the VET price will continue to rise to $0.045 in the near future.
However, it may undergo a correction to the $0.03 level before resuming the uprend.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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