VeChain Back In The Spotlight! Technical Analysis Of December 5, 2024

VeChain recorded an impressive performance of over 327% in one month after bouncing off its support. Let’s examine the future prospects for VET.

Situation of VetChain (VET)

After reaching a peak of $0.05, VeChain faced selling pressure, thus reversing the trend of the crypto. Indeed, VET then recorded a decline of over 66%, gradually bringing its price down towards the support of $0.019. Subsequently, VeChain went through a consolidation period in the form of a double bottom. The breakout of this last formation, at the beginning of November, sparked growing buying interest that allowed it, in turn, to benefit from a real expansion, reaching a high level not seen since April 2022 at $0.08.

As of the writing of these lines, the VET price is trading around $0.069. A slight selling interest seems to have emerged; however, the short, medium, and long-term trend remains bullish. This is supported by the fact that the crypto is now positioned above its 50 and 200-period moving averages, which are crossed and trending upwards, as well as above its VWAP and significant value areas. Regarding VeChain’s dynamics, it has, unsurprisingly, been largely revised upwards, as evidenced by its price and oscillators. Although this situation is attractive, it is important to remember that strong bullish volatility often heralds a forthcoming pause or even a correction.

The current technical analysis has been conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Live sessions, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Overview of VetChain Derivatives (VET/USDT)

The open interest on VET/USDT perpetual contracts has evolved in correlation with the appreciation of its underlying asset, reflecting a predominantly buying intention from speculators. This dynamic is confirmed by rising funding rates, indicating growing confidence in the continuation of the crypto’s ascent. However, it is important to note persistent selling pressure on market orders, observed via the CVD, which shows a clear divergence with these indicators. Regarding liquidations, a notable spike in liquidations of long positions has been recorded. However, this does not seem to have significantly affected VET, which subsequently reached a new peak.

Following VeChain’s rise, the liquidation heatmap of VET/USDT contracts reveals various noteworthy liquidation zones. Above the current price, one can identify the zone around $0.078. Below the current price, there is first a significant zone below $0.060. Just after, a zone between $0.056 and $0.050 stands out. Finally, lower down, the zone above $0.042 also appears to be significant. The price’s approach towards these levels could trigger massive order executions, thereby increasing the risk of heightened volatility for the crypto. Therefore, these zones represent a crucial point of interest for investors.

Forecasts for VetChain Price

• If the price of VET remains above $0.038, a breakout above $0.080 could be considered. The next resistance to watch, in case of continued upward movement, would be around $0.085 or even $0.090. Beyond that, targets such as $0.10 or even $0.12 could be reached, representing an increase of over 73%.
  
• If VET fails to maintain above $0.038, a retreat towards $0.030 or even $0.028 could occur. In the event of continued downward movement, the next notable support would be around $0.023, corresponding to a decrease of approximately 67%.

Conclusion

VeChain has gone through a phase of decline followed by a consolidation that led to a sustained bullish recovery. The current trend remains favorable, supported by positive technical signals, but caution is warranted in light of a potential pause or correction, often associated with strong volatility. Thus, it will be essential to closely monitor the price’s reaction to key levels to validate or revise current forecasts. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.