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VET price reclaims $0.030 and signals a potential breakout rally to the $0.060 level. Derivatives data shows a bullish bias, with a 5.75% rise in open interest.
As top coins rally, boosting the total crypto market capitalization to $3.44 trillion, VeChain records a massive surge of 8.58%, surpassing the 200-day EMA. With this bullish comeback, VeChain hints at a potential inverted head-and-shoulders pattern, targeting a surge above $0.060.
VeChain Price Analysis
On the daily chart, VeChain’s price action showcases a bullish inverted head-and-shoulders pattern, with the neckline near $0.0327. This key resistance level coincides with the 23.60% Fibonacci level.
VeChain forms its third consecutive bullish candle following the 200-day EMA breakout. Currently, the VET token trades at $0.030, reclaiming this psychological level.
As the uptrend gains momentum, the daily RSI line bounces off the halfway mark and surpasses the 14-day SMA.
With the RSI line pointing higher, the distance from the overbought zone indicates significant room for growth in VeChain. Additionally, the 200-day EMA breakout increases the likelihood of an uptrend in the 50- and 100-day EMA lines, potentially leading to a positive crossover.
According to Fibonacci levels, a potential pattern breakout will likely surpass the 61.80% Fibonacci level at $0.055. This estimate is derived by adding the pattern’s depth to the breakout point, suggesting an 88% rally to $0.061.
On the flip side, if the altcoin fails to break above the 23.60% Fibonacci level, a potential retest of the 50-day EMA at $0.027 could occur.
VET Derivatives Supports Bullish Bias
Amid the sudden surge in bullish pressure, the VeChain derivatives market witnesses a significant boost. Open interest has surged by 5.75%, reaching $86.47 million. Notably, the funding rate remains steady at around 0.010%, signaling consistent bullish intent.
Surprisingly, the recent price surge has increased optimism among Binance traders betting on VeChain. According to CoinGlass data, 64% of Binance accounts trading VET-USDT perpetual contracts are bullish on the altcoin.
This reflects a long-to-short ratio of 1.82 based on the accounts. With this overall bullish bias, a potential leverage-driven rally for VeChain is possible.
However, traders should remain cautious, as 35% of short positions could command greater capital, which might undermine the long bias.