VeChain (VET) Targets a 40% Rise as Momentum Builds
- VeChain has its price battling to overpower the Anchored volume-weighted average price (VWAP) at $0.88 that started on 3 January this year.
- VET was about to activate the double bottom on 1 August.
- The 6-hour chart indicates a Golden Cross emerging, suggesting price rises.
VeChain has its price recovering from the 50-week Simple Moving Average, recording a 15.21% surge the previous week and ending July with 1.64% losses. The perseverance Anchored VWAP has had a rally extension since the 26 July highs.
That has prevented VET from registering a double bottom structure. If the coin fails to activate the double bottom formation, the attitude will remain neutral with a possibility for mild pullbacks.
VET has gained over 45.88% since 21 July, sending the altcoin around the double bottom. That triggered the $0.095 price and the strategically essential 200-d Simple Moving Average at $0.097. Also, the flattened VET price movements in the previous seven sessions compressed the Bollinger Bands to their thinnest range since the early June declines.
VeChain’s contraction positioned the altcoin to see sudden price moves in the coming sessions. After the actions that triggered the double bottom, VET has to battle the 200-d SMA near $0.097. For now, the asset prepares to try the 38.2% Fib retracement at $0.133, the April and May correction.
Such moves will result in a 58% profit from the prevailing price. The Fib level can serve as a critical resistance because of the congestion in early June and late May.
The predicted double bottom move is 41.68%. With that, VeChain targets the $0.135 level, over the 38.2% Fib retracement zone at $0.133.
The 6-hour price chart shows an emerging bullish golden cross formation, confirming the bullish thesis. Remember, the pattern comes when the 50 six-hr Simple Moving Average crosses over the 200 six-hr SMA. The previous Golden Cross on the 6-hr price chart formulated in 2020 November before the significant gains towards the highs in April.
If VeChain overpowers the suppressing resistance of the 200-d Simple Moving Average and VWAP, it will experience bullishness.
What do you think about the projected VeChain price? Comment below.