VeChain has moved sideways in the past week, with more downward action than larger cryptocurrencies. While Bitcoin, Ethereum and others have made some gains, the price of VET continues to fall.
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At the time of writing, VeChain is trading at $0.048 with losses of 8.9% and 34% in the past two weeks and 30 days, respectively. However, the cryptocurrency could be at crucial levels and ready for a major price hike.
VET trends are going down on the daily chart. Source: VETUSDT Tradingview
analyst Justin Bennett claims the price rally of this upcoming VET could boost the cryptocurrency by 40% from its current level.
On the weekly chart, the analyst identified a 2020 setup. At that point, the price of VET was preparing for what Bennet believes would be one of the biggest rallies in the following months.
The analyst advised his audience to “take everything with a grain of salt”. In that sense, he showed that the price of VET moves sideways in a reverse “head and shoulders” pattern.
As seen below, when VeChain managed to break above that trendline, the price was able to resume bullish momentum into unknown territory. At the time, the price of VET made more than 1,000% gains through 2021.
Source: Justin Bennett from YouTube
Trending down from that rally, as the chart shows, VET’s price has bounced back below the 2018 trendline, to levels last seen before the aforementioned rally. Bennett said:
In order for VET to move significantly higher this year, I’m talking $0.10 and above, it’s going to have to get above this trendline. So this is what I mean by this trendline, it will be significant in terms of the overall context of the market.
VeChain, Bennet added, was already trying to break above this trendline again but failed near the $0.070 price. Until the price of VET can return to those levels, the cryptocurrency is in a downtrend.
Can VeChain break above this critical level?
Bennet clarified that the price of VET could bring some relief in the short term. The cryptocurrency could be poised for a 40% pullback to its previous resistance levels of $0.070.
To achieve that bullish move, VeChain needs to break above the area around $0.050 in lower time frames. As seen below, the price of VET on the daily chart should see a daily close above this resistance price point. Bennett said:
The market comes to a point where it has to make a decision (…). The setup I’m looking for for VET will be a daily close above the $0.050 area (…). Then we look at a possible shift into that $0.070 area (…). From $0.050 to $0.070 it may not sound like much, but that’s a 40% rally. In my opinion it is worth the wait.
Source: Justin Bennett from YouTube
Data from Material Indicators shows that the price of VET is currently $500,000 in bid orders. These orders could act as support if VeChain enters the critical resistance area around $0.050.
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If the price of VET moves above those levels, the next resistance levels will be at $0.050, registering less than $200,000 in demand orders.