VeChain Targets Highs After Increased Profit-Taking
Key Takeaways
- VeChain reached a record high of approximately $0.08 on Mar. 15.
- Although investors took advantage of the rising price action to book profits, VET’s uptrend remains intact.
- As long as this cryptocurrency holds above $0.07, the odds will favor another upswing to $0.09.
While the cryptocurrency market kicked off the new weekly trading session on a negative note, VeChain stole the spotlight by rising to a new all-time high slightly above $0.08.
VeChain Is on Track for Further Gains
VeChain broke out of an inverse head-and-shoulders formation on Feb. 9. This pivotal moment occurred after a two-year-long consolidation period, adding more significance to VET’s upside potential.
After successfully retesting the pattern’s neckline at $0.036 in late February, VeChain officially entered a new bullish cycle from a technical perspective.
Now that this cryptocurrency has risen more than 100% since the retest, the inverse head-and-shoulders pattern projects that VET could climb another 660% to hit a target of $0.56.
But first, VeChain will have to close above the 127.2% Fibonacci retracement level at $0.086 to advance further.
Significant Resistance Ahead
Moving past the overhead resistance will not be as easy despite the bullish momentum that VET has seen over the past 41 hours.
Indeed, VET appears to be contained in an ascending parallel channel since late December 2020. Each time VET has risen to this technical pattern’s upper boundary since then, a rejection occurs that pushes prices to the lower edge. From this point, it tends to rebound, consistent with a channel’s characteristics.
If such price action repeats itself, VeChain might surge towards the channel’s upper trendline at $0.090, then retrace to the middle or lower trendline.
Only a daily candlestick close above this hurdle or the 127.2% Fibonacci retracement level can lead to a parabolic advance towards the 161.8% Fibonacci retracement level at $0.26.
It is worth noting that VeChain saw a significant increase in profit-taking shortly after reaching a new all-time high of $0.0835 on Mar. 15. The spike in selling pressure has pushed this cryptocurrency down by 11.40% to hit a low of $0.074.
As long as the $0.070 support level holds, the odds will favor another leg up to $0.090 before a meaningful correction materializes.
Failing to hold above this crucial support level could generate panic among late buyers and investors. That event could send VET towards the channel’s lower boundary at $0.058.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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