The crypto market is beginning to show signs of recovery. Ethereum has risen by 9% over the week, climbing above the $2,050 mark. This positive sentiment has affected altcoins, notably Avalanche and VeChain.
Avalanche Rise: Breaking Out of Falling Wedge
Avalanche (AVAX) has successfully broken out of a falling wedge pattern, which is typically seen as a bullish signal. The token surpassed the upper trendline of the wedge around the $19.20 range last week. Currently, AVAX is trading around $21.56, testing key resistance at the 50-day moving average (MA). If bullish momentum continues and AVAX breaks above this MA, the next resistance lies at the $26.93 zone, followed by the 100-day MA and the $36.22 level, representing a 66% increase from the current price. The MACD indicator on the daily chart shows a positive crossover, where the MACD line is moving above the signal line, a classic bullish signal.
VeChain: Preparing for a Potential Breakout
VeChain (VET) has also been trading within a falling wedge since December. Recently, the token bounced from the lower trendline support at $0.020 and is now trading at $0.026, approaching a crucial breakout point. A confirmed breakout and retest of the wedge’s upper boundary could push VET toward the 50-day moving average at $0.029. If buying pressure sustains, the next major resistance would be at $0.036 and the 200-day MA, with a further move toward $0.049, representing a 90% potential upside from current levels. The MACD indicator for VET is showing early signs of bullish divergence, suggesting that selling pressure is weakening.
Final Thoughts
AVAX’s breakout has sparked bullish momentum, and if VET follows the same path, it could also see significant gains. The technical patterns suggest positive momentum ahead, but there might be consolidation before a confirmed breakout occurs. As always, traders should monitor key resistance levels, volume confirmation, and broader market sentiment before making investment decisions.
Altcoins begin to recover amidst gains in key cryptocurrencies like Ethereum. However, a period of consolidation may occur before potential breakouts.
