The VeChain price has gained 25% this week as Bitcoin leads the cryptocurrency market higher, but can VET maintain the momentum?
VeChain (VET) has turned higher this week as confidence returns to the beaten-down crypto market. Bitcoin’s recovery to $51,000 has spurred a wave of altcoin buying, helping many assets pare the losses sustained earlier in the month. But although VET is inching higher, it’s still down 50% from the November high and 65% below May’s record of $0.2798. Due to its recent sluggish performance, VeChain is losing ground against rival cryptocurrencies. The projects market cap has dropped from a peak of $16.8 billion in May to approximately $5.6 billion, ranking VET the 31st most valuable cryptocurrency. Furthermore, although the VeChain price is attempting to push higher, considerable overhead resistance blocks the path to the all-time high.
VET Price Forecast
The daily chart shows that VET has turned higher from the highlighted support channel. As a result, the token has cleared the resistance (now support) of the 50-DMA at $0.0909. Additionally, the Relative Strength Index (RSI) of 49.50 shows that bullish momentum is picking up. However, the upper Bollinger Band at $0.0963 is stifling VET’s progress for now.
As long as VeChain remains above the 50-DMA, the outlook is constructive, targeting the 200-DMA at $0.1163, although extensions above the upper BB are usually unsustainable. For that reason, I expect a rally to be short-lived.
Nonetheless, the price action suggests the near term direction is higher, towards the 200-DMA. However, a close below the 50-DMA at $0.0909 invalidates the optimistic thesis.
VeChain Price Chart (Daily)
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