The bullish pennant breakout signals upward potential, with a key resistance level at 0.057 USD.
Market confidence is rising, with open interest reaching 88.23 million USD, RSI at 51.19, and indicators are robust.
VeChain [VET] has attracted market attention with a strong breakout from the bullish pennant pattern, suggesting that its upward trend may continue after weeks of consolidation.
Driven by increased market interest and a surge in trading activity, this breakout marks a key moment for VET, trading at 0.05218 USD, having risen 10.4% in the past 24 hours as of the time of writing.
As momentum builds, the question arises: Can VeChain maintain this rally 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 surge in trading volume of 42.54% enhancing confidence in this trend.
The current resistance zone is around 0.057 USD, and if this level is broken, VET may advance towards the 0.08 USD area, setting it 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 continued strength
Key technical indicators align with the bullish narrative. RSI at 51.19 suggests there is still room for growth without entering overbought territory.
Additionally, the MA crossover between the 9-day (0.04943 USD) and 21-day (0.05593 USD) moving averages highlights a positive trend, indicating potential for continued upward movement.
These indicators suggest that the breakout is supported by technical strength, and traders may be preparing for further upward movement.
VET social dominance: slightly declining
Despite the price surge, VET's social dominance has declined, dropping from a recent peak above 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 is strengthening
According to Coinglass analysis, open interest increased by 13.11% to 88.23 million USD, reflecting renewed confidence among derivatives traders.
Total liquidations show long positions at 285.6 thousand USD and short positions at 646.46 USD, indicating a cautiously optimistic attitude among investors rather than excessive excitement.
The balance between these indicators suggests a healthy market structure that supports the potential for sustained growth.
With strong trading volume and support from technical indicators, VeChain has broken out of the bullish pennant pattern, signaling a positive outlook.
With resistance levels around 0.057 USD and ongoing support from technical and market indicators, VET is expected to maintain an upward trend in the short term.
