- VeChain price is forming an ascending triangle pattern, hinting at a 63% upswing to $0.235.
- A decisive 6-hour candlestick close above $0.143 will signal a breakout and start of the rally.
- However, a breakdown of the swing low $0.0825 will invalidate the optimistic outlook.
VeChain price is consolidating inside a bullish technical formation that forecasts a massive uptrend. However, a breakdown of a critical support could put a dent in this rally.
VeChain price prepares for a blast-off
VeChain price set up roughly three equal highs around $0.143 starting from May 19, while creating multiple higher lows. If these swing points are connected using trend lines, an ascending triangle seems to form.
This technical formation projects a 63% upswing to $0.235, determined by adding the distance between the first swing high and swing low added to the breakout point at $0.143.
Interestingly, the breakout point for VeChain price coincides with the supply zone that stretches from $0.127 to $0.142.
So, the bulls need extra oomph to slice through this resistance area and produce a decisive 6-hour candlestick close above $0.143. Such a move would signal a breakout from the bullish formation and the start of an uptrend for VET.
Interestingly, the target at $0.235 coincides with the lower limit of the supply zone that extends up to $0.266.
Investors should also note that the supply level at $0.187 might hinder VET’s uptrend or even halt it. Therefore the buyers need to clear this level to hit the intended target at $0.235.
VET/USDT 6-hour chart
While things seem to be looking up for VeChin price, market participants should keep a close eye on the support barrier at $0.0825. A breakdown of this level will invalidate the bullish thesis and trigger a 20% crash to $0.0656.