Price of VeChain (VET) could increase by more than 200%

VeChain (VET) broke out of a long-term downtrend last week, after rising about 22%. This, in turn, is a strong sign of a long-lasting bottom.

VET breaks out of bullish pattern

The price of VET has been falling since April of 2021 when it reached an all-time high of $0.2793. A descending wedge, which is viewed as a bullish pattern, had contained the downward movement.

In June of last year, the price fell as low as $0.0200 before bouncing back and starting to rise again. After creating a slightly lower low in December, the price started another upward move.

VET broke out of the bearish wedge in the second week of this month. While the exact slope of the line is difficult to determine due to multiple extended top wicks, it appears that price has now broken out. Since the wedge has been around for 370 days, there would likely be significant upward movement if it did.

The possibility of an increase is supported by the weekly RSI, which broke out of its own descending resistance line. If the upward move continues, the closest resistance area would be at USD 0.063. This is a long-term area that has previously provided support. If it goes above it would confirm that the bullish reversal is in place. From the current price, the area is more than 200% removed.

VeChain (VET) price breakout
VET/USDT weekly chart. Source: TradingView

VeChain price is moving towards resistance line

The technical analysis (TA) forecast is still undecided on the daily chart. VET is facing resistance by a confluence of levels at USD 0.0215. This one created by a descending resistance line and the USD 0.0215 resistance area.

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The level caused a rejection (red arrow on the image) on January 17th and started the current downward movement for VET. In addition, this caused the daily RSI to drop below 70.

A breakout from the descending resistance line and the USD 0.0215 area would confirm the weekly chart’s bullish signals. In this case, an increase to USD 0.063 would be expected.

VeChain (VET) daily chart
VET/USDT daily chart. Source: TradingView

To conclude, the most likely VeChain price prediction is a rise towards the USD 0.062 long term resistance area. A breakout of the short-term descending resistance line would confirm this possibility. On the other hand, a rejection of the line could lead to a decline towards USD 0.0186 – USD 0.0178. However, this remains only speculative and is not trading advice.

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