- VeChain has a strongly bullish market structure over several periods.
- The token has broken 2024 highs and buyers are targeting $0.08 next.
VeChain (VET) gained 25.6% on Monday, December 2 and is up 17% over the past eight hours. Further gains may follow, but it would be prudent to wait for a decline towards $0.055 before buying VET.
Since November 5, VeChain has gained almost 250%. VET is following the trend of older tokens, leading large-cap altcoins in this bull run, such as Stellar (XLM) and Ripple (XRP).
3-day RSI, OBV near April 2021 highs
Source: VET/USDT on TradingView
The 3-day chart showed that the March highs were convincingly surpassed. Additionally, the price was beyond the 23.6% extension level plotted based on the early 2024 rally. This is a sign of strong bullish intent and the price is likely to climb higher .
The RSI on the 3-day chart was at 89, a value the indicator has not reached since mid-April 2021. This is when VET reached its all-time high at 0.281 $. That’s a 75% drop from this point. To the north, the next notable resistance levels beyond $0.0645 lie at $0.08 and $0.095.
Like the RSI, the OBV has also increased significantly. It reached levels that OBV had already reached in April and May 2021. While this denotes strong buying pressure, it also raised fears that this could be the top for VeChain.
It is unclear whether this is the case. In the coming weeks, traders and investors can expect a pullback: it is too late to FOMO and buy the token at these prices.
Liquidity builds up around $0.065
Source: Coinglass
The past 48-hour liquidation heat map depicts the $0.07 and $0.065 areas as nearby liquidity clusters. These regions on the price chart should act as a magnetic zone and attract prices towards them.
Source: Coinglass
Zooming in, we can see that the $0.065 and $0.055 are the closest liquidity pools of significant size. VeChain’s rapid gains over the past few weeks have meant that the market has had little time to consolidate at key levels.
Read VeChain (VET) Price Prediction 2024-25
Therefore, traders should prepare for a decline towards $0.055, but this does not justify a short sale. The longer term trend is clearly bullish and any decline would likely be quickly recovered.
A drop in VeChain price below $0.04 would be a strong sign that the bulls have lost considerable strength and the uptrend may fade. Until then, investors and traders must demonstrate a bullish bias.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
