The bullish pennant breakout suggests upward potential, with key resistance at $0.057.
Market confidence is rising, with open interest reaching $88.23 million, RSI at 51.19, and indicators robust.
VeChain [VET] has attracted market attention with a strong breakout from a bullish pennant pattern, suggesting that its upward trend may continue after several weeks of consolidation.
Driven by increased market interest and a surge in trading activity, this breakout marks a crucial moment for VET, with a trading price of $0.05218, up 10.4% over the past 24 hours as of this writing.
As momentum builds, a question arises: Can VeChain maintain this upward trend and challenge key resistance levels?
VET Price Action Analysis: Bullish Pennant Breakout
The breakout from the bullish pennant pattern indicates strong upward momentum, with a subsequent volume surge of 42.54% enhancing confidence in this trend.
The current resistance zone is near $0.057, and if this level is broken, VET may move towards the $0.08 region as the next target.
However, traders should cautiously monitor price movements, as breaking these levels could trigger a pullback. The structure of the breakout indicates strong buyer interest, but sustained momentum is key for further increases.
VeChain Technical Indicators: Signals of sustained strength
Key technical indicators align with the bullish narrative. The RSI at 51.19 indicates room for growth without entering overbought territory.
Additionally, the MA crossover between the 9-day ($0.04943) and 21-day ($0.05593) moving averages highlights a positive trend, indicating potential for continued upward movement.
These indicators suggest that the breakout is technically supported, and traders may be preparing for further upward movement.
VET's social dominance: Slight decline
Despite the price surge, VET's social dominance has declined, dropping from a recent peak of over 0.7% to 0.1%. This may reflect a temporary lag in social media attention compared to its price performance.
However, this divergence may also indicate that the breakout is driven by more significant market participants rather than speculative retail activity, which could lend credibility to this move.
Open interest and liquidations: Confidence strengthened
According to Coinglass analysis, open interest increased by 13.11%, reaching $88.23 million, reflecting a resurgence of confidence among derivatives traders.
Total liquidations show long positions at $285,600 and short positions at $646.46, indicating a cautiously optimistic attitude among investors rather than excessive excitement.
The balance between these indicators indicates a healthy market structure, supporting the potential for continued growth.
Supported by strong volume and technical indicators, VeChain has broken out of the bullish pennant pattern, signaling a positive outlook.
With resistance around $0.057 and ongoing support from technical and market indicators, VET is expected to maintain an upward trend in the short term.
