- VeChain price positions itself for a breakout to begin a rally towards new all-time highs.
- Buyers must pour into VeChain to break the resistance levels ahead.
- Failure by bulls to rally VeChain could trigger a return to $0.106.
VeChain price is poised for a big rally, pending a return to $0.15. However, conditions favor a slight pause at the present value area as bulls and bears take a breather to determine their next move.
VeChain price holds while bulls decide when – or whether – to push higher
VeChain price action has some significant resistance ahead. To confirm that a new bullish expansion phase is about to begin, VeChain must first close above the primary resistance levels above it: the subjective downtrend angle at $0.146 and the most recent swing high at $0.148. A pause in momentum and some apprehension by buyers to entering at current value area is understandable.
A hypothetical long trade idea would be a buy stop above the two resistance levels for an entry at $0.15. The stop loss would return VeChain price below the trendline at $0.14 with a projected profit target at $0.1850. Of course, it is entirely possible that $0.1850 may get run over amidst some FOMO buying, but $0.1850 has a collection of Fibonacci and volume profile levels indicating likely selling pressure at that level.
VET/USD $0.002/3-box Reversal Point and Figure Chart
If buyers are unable or unwilling to push VeChain price above its near-term resistance, the sellers could come in and attempt to wrest control from buyers. If a new O-column develops and breaks a double-bottom at $0.128, then an extremely bearish Point and Figure pattern would be confirmed: the Bullish Fakeout. A theoretical short trade based on the Bullish Fakeout would be a sell stop at $0.126, stop loss at $0.134 and a profit target at $0.106.
VET/USD $0.002/3-box Reversal Point and Figure Chart