VeChain successfully upgraded its VeChainThor blockchain network to version 1.5. However, the price of the VET/USDT pair continues to struggle amid the general lull in the crypto market.
The steep corrective decline in the VET/USDT pair followed the double top formation, with the break of the neckline just above the 61.8% Fibonacci retracement level, signaling the extension of the decline that found support at the 4 cents price level. Since then, the uptrend recovery has been laborious.
There is a potential to continue this recovery, given the formation of a falling wedge within the flag consolidation area. However, this recovery needs to transcend the 18 cents mark to gain traction and invalidate the potential of a future downside move.
Vechain Price Prediction Outlook
The VET/USD pair is trading within the range of the ascending channel as it consolidates into a corrective rally following the pair’s recent decline. This scenario has allowed the pair to form a bearish flag on the daily chart. The expected resolution of this pattern is for the price to break down the flag’s lower border, setting up a decline whose projected measured move extends towards the 0.02 price support. This measured move would need to take out support levels at 0.0805, 0.0599 and 0.0392.
On the other hand, price recovery that takes the VeChain token above the flag’s upper border, breaching 0.1613 in the process, negates the previous outlook and sets up a move towards 0.1844. Above this level, an additional target to the north lies at the 38.2% Fibonacci price level of 0.2079.
But what happens between these two extremes? Price within the channel has formed a falling wedge, which indicates that a break of the upper border could allow VeChain a chance at a slight recovery, at least to the flag’s upper border.