- VeChain price has advanced 290% from a primary base in January.
- But since February 24, VET has been contained within an ascending parallel channel.
- The recent retest of the channel’s lower boundary suggests that this cryptocurrency is about to rebound.
VeChain made headlines after the impressive price action it has enjoyed over the past few months. Although VET suffered a significant rejection after rising to an all-time high of $0.0845, it looks primed for another leg up.
VeChain price strength driven by the rising user base
Since the end of February, VeChain’s volume profile underlying the rally has been textbook perfect. With above-average volume on green candlesticks and lower than average volume on red candlesticks, as seen in the 12-hour chart below. Such market behavior can be considered bullish.
The continuous confirmation of the Relative Strength Index (RSI) with every new price high adds credence to the optimistic outlook as it shows strong momentum.
Further upward pressure could push VeChain price to the 3.618 extension level at $0.0976. The upswing would represent a gain of 43% from the current placement of the channel’s lower trendline.
VET/USD 12-hour chart
Nonetheless, VeChain price must hold above the channel’s support trendline at $0.070 to validate the bullish outlook. Failing to do so could set the stage for a downswing to the $0.0610 – $0.0609 price range where the .382 retracement meets the February highs.
The next price support is the confluence of the .50 retracement level and the 50 twelve-hour simple moving average (SMA) around $0.054.