VeChain Price Forecast: VET Sweeps Through Recovery Target, But Pullback Looms
- Vechain price outperformed the falling wedge recovery target at $0.4.
- Closing the day below $0.14 could be detrimental to the uptrend and lead to a gains-trimming event.
VeChain stretched the bullish leg higher, a move that saw a breakout target from July achieved. Following a nearly 12% growth in 24 hours, VET is teetering at $0.13. The $8.7 billion crypto briefly stepped above $0.14 but slowed down the uptrend. According to CoinGecko, VeChain has attracted a trading volume worth $1.2 billion across all exchange platforms.
Why VeChain Risks Another Retreat
Vechain formed a falling wedge pattern on the daily chart during the freefall from $0.285, an all-time high traded in May. The selloff dominated the market, with investors left bleeding to the recent support at $0.056 in July.
As expected, the wedge pattern gave way to a breakout, with a 120% target of $0.142. As the recovery began to take root, VeChain bulls focused on erasing the losses incurred. Earlier this week, VET climbed above $0.142 but suddenly stopped at $0.146.
Realize that the daily chart shines a light on the short-term support established at $0.11. Although a rebound is underway, it could be a challenge rising above the more two-month high at $0.146. Thus, a daily close below this level may see overhead pressure intensify as seller put their feet forward.
VET/USD Daily Chart
The 100 Simple Moving Average (SMA) has crossed below the 200 SMA, suggesting that the downtrend could gain traction in the near term. Note that a golden cross would take time before coming into the picture, mainly with the 50 SMA catching up to the 200 SMA.
Data by Santiment shows that the number of VET-related mentions on different social media networks surged over the last 24 hours. The rising chatter around the token allowed VeChain to stretch the bullish leg to $0.146, bolstered by increased investor interest.
However, increased attention is not necessarily a good sign for the continuation of the uptrend. When prices pump, and the crowd starts paying attention, a dump usually follows shortly after.
Therefore, VeChain may fail to keep the uptrend intact and perhaps pull back to $1.1. The 200 SMA and the 100 SMA are in line to prevent a massive dip.
VeChain Social Media Mentions
On the other hand, the Moving Average Convergence Divergence (MACD) indicator shows that buyers still have the upper hand. If they close Friday above $0.14, we expect the uptrend to stretch to $0.2 before another correction.