VeChain has rebounded from a critical support barrier after a market-wide correction saw its price drop by 46%. Now, VET seems primed to resume its uptrend towards new all-time highs.
VeChain Enters New Bullish Cycle
VeChain broke out of an inverse head-and-shoulders formation on Feb. 9 following a two-year-long consolidation period.
Slicing through the $0.035 resistance level marked the beginning of a new bullish cycle on this altcoin’s trend from a technical perspective. Indeed, the distance between the pattern’s head and neckline projects that VeChain is primed for a 1,500% rally.
The recent retest of the underlying support has strengthened the bullish outlook. Now, VET could see its market value rise towards $0.56 as forecasted by the inverse head-and-shoulders.
VeChain faces only one critical hurdle on its way up before it re-enters price discovery mode. Moving past late February’s all-time high of $0.063 will further validate the optimistic scenario.
If this occurs, the Fibonacci retracement indicator suggests that the next considerable areas of interest will be at $0.17 and $0.63.
It is worth noting that VeChain must continue trading above the head-and-shoulders’ neckline at $0.035 for the bullish outlook to remain intact. A sudden bearish impulse that breaks this support level will increase the odds for a steeper correction.
Under such unique circumstances, VET might dive towards the 78.6% or 61.8% Fibonacci retracement level. These support barriers sit at $0.028 and $0.015, respectively.
Disclosure: At the time of press, the author held Ethereum and Bitcoin.