- VeChain price has been consolidating in an ascending parallel channel for over the past two months.
- The pattern’s lower trendline cushioned the recent 42% crash.
- Bouncing off this support level now suggests the possibility of a 75% upswing towards the channel’s upper trendline at $0.084.
VeChain price marches towards greener pastures after rebounding from a critical support barrier.
VeChain price resumes its bull rally
VeChain price has been forming a series of higher highs and higher lows since late December 2020. By connecting these pivot points using trendlines, an ascending parallel channel can be spotted on VET’s 12-hour chart.
This technical formation has a bearish bias, which results in a downward breakout in price equal to the channel’s height added to the breakout point. However, a sudden spike in bullish momentum has resulted in a V-shaped recovery.
Now, VeChain price eyes a higher high and could move past its previous all-time high of $0.061.
Supporting this bullish thesis is the Moving Average Convergence Divergence (MACD) indicator, which shows an increase in buying pressure seen in the form of green histograms above the zero-line. It presented a bullish crossover on March 2, where the 26 twelve-hour exponential moving average moved above the 12 twelve-hour exponential moving average, which is another positive sign.
VET/USDT 12-hour chart
Investors should note that the potential 75% bull rally towards the channel’s upper boundary at $0.084 comes with significant hurdles. Two levels, in particular, could deter the upswing in VeChain price.
These levels include the $0.050 resistance, which coincides with the 78.6% Fibonacci retracement level, and the previous all-time high at $0.061.
Rejection at these barriers could be fatal and result in a pullback. Nonetheless, a 12-hour candlestick close below the ascending parallel channel’s lower trendline at $0.040 will invalidate the bullish thesis. In such circumstances, VeChain price could pull back by 15% towards 38.2% Fibonacci retracement level at $0.034.