Date: Sat, Jan 04, 2025, 08:26 AM GMT
The cryptocurrency market is witnessing an optimistic start to the year as Bitcoin's (BTC) dominance falls below 57%, signaling a shift in market dynamics. Bitcoin itself has seen a strong rebound from its December 31 low of $92,000, now trading near $98,000. This recovery has fueled upside momentum in altcoins, including VeChain (VET), an Internet of Things (IoT) token that previously experienced a steep correction after its November rally.
VET's performance has seen its challenges, with the token posting a 25% decline in December. However, signs of a bullish recovery are emerging as VET gains an impressive 12% over the past week, hinting at the potential for further upside momentum.
Source: Coinmarketcap
Technical Setup Suggests a Potential Breakout
A key technical setup on the 4-hour chart suggests that VeChain may be gearing up for a significant move. Prominent crypto analyst @JohncyCrypto highlights that VET has successfully broken out of a falling wedge pattern, a bullish formation often associated with impending price increases.
Source: @JohncyCrypto (X)
Currently, VET is trading around $0.052 with testing the 200-moving average (MA), a crucial resistance level on the 4-hour chart. This MA has acted as a barrier to upward momentum, but a confirmed breakout above this level could pave the way for further gains.
Price Targets to Watch
If VeChain successfully clears the 200-MA, analysts are eyeing potential price targets of:
$0.061
$0.069
$0.079
These levels align with historical resistance zones and Fibonacci extensions, adding credibility to the targets.
Bitcoin Dominance and Altcoin Momentum
The broader market is also playing a supportive role in VeChain's recovery. The decline in Bitcoin dominance to under 57% is creating room for altcoins to shine. With BTC consolidating near $98,000, altcoins like VET are likely to attract renewed investor attention as traders look for higher returns in the altcoin space.
Conclusion: Is a Breakout Imminent?
VeChain's technical setup and improving market conditions suggest that a breakout could be on the horizon. However, the confirmation of the breakout above the 200-MA is critical for further upside. Investors should watch these key resistance levels closely to assess the potential for continued bullish momentum in VET's price.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
