After two weeks of consolidation, the VeChain price looks ready to break out. Furthermore, a bullish technical pattern suggests the move could be big. While many cryptocurrencies have surged higher in the last few days, Vechain is trading around the same price as two weeks ago. However, the time might be right for the supply-chain platform to join the rally.
Although VeChain (VET/USD) has gained more than 150% from July’s low to $0.1416, it’s still exactly half the price it was at May’s peak. Therefore, considering many assets have reached new highs recently, VET should be viewed as an underperformer. The VeChain platform uses Internet of things (IoT) technology to reduce costs and improve the efficiency and transparency of supply chains. And whilst this has the potential to be groundbreaking, the current Defi and NFT boom has seen VET overlooked. Nonetheless, the VeChain price may be on the verge of a new bull run.
The daily chart shows that following the rally in July, Vechain reversed from $0.1466 to $0.1126. This morning, VET traded to $0.1455, creating what appears to be a cup and handle chart pattern. This is considered a bullish sign and suggests the VeChain price may exceed July’s high. In that event, resistance is seen at the June high of $0.1522, but following that, the path is clear.
Above $0.1522, there isn’t much in the way of resistance until the MAY all-time high of $0.2823. However, it will take a monumental effort for VET to double in price. For a sustained rally, the cryptocurrency market as a whole will need to build on recent gains. That being said, technically speaking, a bullish scenario emerges above $0.1522.
However, if VET falls below the 200-day moving average at $0.0983, the outlook turns negative and suggests the price will succumb to selling.
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