A recent analysis from noted crypto analyst Egrag Crypto has drawn attention to VeChain (VET), emphasizing strong technical signals that could lead to significant price movement.
Symmetrical Triangle Forming Over a Decade-Long Cycle
At the core of Egrag’s analysis is a massive symmetrical triangle formation spanning over 2,350 days, or about 6.5 years. This type of pattern typically suggests long-term consolidation, where the price coiled into a tighter range before an anticipated breakout.
Key Bullish Signals: Trend Line and EMA Confirmations
The analyst points to several early signs of building bullish momentum. First is a decisive full-body candle close above the 21-day Exponential Moving Average (EMA), currently around $0.027. This technical signal often marks the beginning of trend reversals. Additionally, he highlights a 'double tap' on an ascending yellow trend line, indicating that the trend line has acted as a reliable support, further reinforcing the bullish outlook.
The Critical Breakout Level: $0.06 and the Fib 0.5 Barrier
According to Egrag, the ultimate confirmation for a bullish scenario would be a clean breakout above the upper edge of the triangle, coinciding with the $0.06 price level. This level is not only the upper boundary of the pattern but also aligns with the 0.5 Fibonacci retracement, a historically significant marker.
Egrag Crypto's analysis reveals that VeChain may be on the verge of significant movement, considering its long-term consolidation and the accumulating technical signals. While macroeconomic conditions could influence the timing, the technical evidence is increasingly compelling.
