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The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Fundfa. Every investment and trading move involves risk; you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Key Takeaways
- VeChain (VEN) shows strong recovery potential, driven by positive fundamental news and anticipation of its Mainnet Launch.
- Technical analysis of weekly and daily charts suggests potential upward movement, but with key resistance levels to overcome.
- Trading strategies involve holding current positions, booking partial profits, or waiting for dips and breakouts.
- The VEN/BTC pair has broken out of an inverted head and shoulders pattern, indicating a potential target of 0.00063.
As the fifteenth-largest token by market capitalization, VeChain is demonstrating a remarkable recovery from recent lows. This resurgence is largely attributed to significant fundamental news, with market participants keenly awaiting the VeChainThor Blockchain Mainnet Launch, anticipated for the end of June. The key question remains: can VeChain sustain its momentum, or has its potential been fully realized? Let’s examine the charts to understand its trajectory.
💡 Understanding the underlying technology and upcoming upgrades for a cryptocurrency is crucial for assessing its long-term potential.
Weekly Chart Analysis
For an extended period, from mid-November to mid-December of last year, VEN traded within a narrow range. A noticeable uptrend commenced in late December, propelling the token from a low of 0.00002184 on November 30 to an intraday peak of 0.00081678 on January 22. This represents an impressive 3639 percent return within just two months.
📈 Witnessing such rapid gains is exciting, but it also highlights the volatility inherent in the cryptocurrency market.
Following this surge, a correction occurred, finding support near the 61.8 percent Fibonacci retracement level at 0.00032752. The digital currency reached its lowest point of this corrective phase on March 30, trading at 0.00031748.
📌 Observing Fibonacci retracement levels can provide valuable insights into potential support and resistance zones.
Currently, VeChain has achieved a strong breakout from its downtrend line. The next potential resistance level to watch is 0.00062102. If this level is successfully breached, the token may retest its previous highs.
⚡ A breakout above a key resistance level often signals a continuation of the prior trend or the start of a new one, though confirmation is always recommended.
Daily Chart Insights
Analyzing the daily chart for the VEN/BTC pair reveals a breakout from an inverted head and shoulders (H&S) pattern. This pattern suggests a minimum target objective of approximately 0.00063. This target aligns closely with the overhead resistance at 0.00062102, indicating that a potential dip or period of consolidation might occur around this price point.
📊 Inverse head and shoulders patterns are typically considered bullish reversal patterns, suggesting a potential upward price movement.
On the downside, initial support is observed around the 0.00047 level. Should the price fall below this, the neckline of the inverse H&S pattern is expected to provide further support.
📍 Understanding support levels is vital for risk management and determining potential entry or exit points.
How to Trade the VENBTC Pair Now
For traders who currently hold VeChain, maintaining their positions could be a viable strategy, given the potential for the price to reach 0.00062. However, with a high probability of a dip or consolidation at the overhead resistance, consider booking a small portion of profits and preparing to re-enter at lower levels.
✅ Diversifying entry and exit points can help manage risk and potentially improve overall returns.
New investors might consider waiting for a dip towards the 20-day Exponential Moving Average (EMA) to initiate a purchase, placing a stop-loss just below the 50-day Simple Moving Average (SMA) at 0.0004. A failure of the bullish pattern below 0.0004 could lead to a retest of the 0.00032 levels.
💡 It’s often prudent to wait for confirmation of a bullish setup before committing significant capital.
Alternatively, if a dip to the 20-day EMA doesn’t materialize, traders can wait for consolidation or a correction at the overhead resistance and then look to buy on a breakout. A confirmed breakout would signal a resumption of the uptrend, potentially driving the price towards previous lifetime highs. If the bulls manage to surpass these all-time highs, the cryptocurrency could extend its upward trend towards 0.00111242. However, given the tendency of many cryptocurrencies to give back gains rapidly, it is advisable for traders to trail their stop-losses to secure profits.
📉 The cryptocurrency market is known for its rapid and sometimes unpredictable price swings, making risk management paramount.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.
Fundfa Insight
VeChain’s current market position and upcoming Mainnet launch present a compelling analysis for traders and investors. While technical indicators suggest potential upside, navigating the identified resistance levels and utilizing strategic entry and exit points, as discussed through various trading approaches, will be critical for capitalizing on any further price appreciation.
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