Vechain (VET) has bounced higher after a recent retracement took it to lows of $0.072
VeChain (VET) is likely to record a new all-time high if its price holds above current levels to allow bulls to test barriers near $0.083. At the time of writing, VET’s price against the US dollar is up by 12% in the past 24 hours.
There’s the possibility that investors might want to book profits near the $0.083 price level. However, if the upside momentum holds short term, VET/USD could keep the uptrend and see prices reach $0.09. There’s even a possibility bulls could target a break to $0.105.
VeChain price outlook
On 15 March, VET/USD soared more than 20% to reach the all-time high of $0.083. Buyers can target prices near $0.09 if they establish support near or above this critical barrier.
However, the slight sell-off witnessed on Tuesday and Wednesday largely due to profit booking appears not to have dissipated. It thus poses an immediate risk to bulls’ short-term plans above $0.08.
The technical picture for VET/USD on the 4-hour chart suggests that bulls could test fresh highs if the price remains above $0.78. This price level marks the middle line of an ascending parallel channel formed on the 4-hour chart.
If bulls regroup and push higher, a retest of the upper limit will allow for fresh buying towards the $0.09 and $0.10 targets.
On the downside, VET/USD could decline to the lower limit of the channel at $0.073. The technical perspective suggests bulls will still have the upper hand if the price bounces off this level. The MACD and RSI support this view.
However, dipping below the trend line could allow bears to target the critical support zone provided by the 100 SMA at $0.061.
On the daily chart, VET/USD could break higher if bulls hold above the 0.786 Fibonacci retracement level of the move from $0.035 low to $0.083 high. If the price turns up from highs of $0.09, buying pressure might push it to the 1.272 Fib level at $0.105
The bullish view will remain intact as long as VET/USD holds above $0.069 (0.618 Fib level).
Contrary to this, a dip to $0.063 will call for another leg down. The bears might fancy a move to $0.048 and even $0.035.