VeChain (VET) is showing signs of a potential bullish reversal on the chart, reclaiming key levels and testing resistance for a possible breakout.
Rounding Bottom Formation
Market analysis indicates that VET is forming a rounding bottom on the 4-hour timeframe. This technical structure indicates gradual accumulation as sellers lose strength while buyers regain control. The upward curve confirms absorption of supply.
VET has successfully reclaimed both the 9 EMA at $0.0252 and the 50 SMA at $0.0242. These moving averages now serve as dynamic supports, reflecting strengthened short-term and medium-term bullish alignment.
Breakout Levels and Targets for Upside
The neckline resistance is positioned in the range of $0.0255 to $0.0260. A confirmed breakout above this level would validate the rounding bottom structure and open opportunities for price growth towards the $0.0275 and $0.0285 levels, aligning with previous swing highs. As long as VET remains above the $0.0245 support area, the bullish bias holds.
Support levels also play a critical role, situated near $0.0245 and $0.0242 at the 50 SMA. A drop below these levels would weaken the bullish pattern, though the current configuration still favors upward movement.
Momentum Indicators and Their Importance
Momentum indicators are reinforcing the bullish technical outlook. The MACD has crossed into positive territory, with the MACD line above the signal line, while the histogram shows green, indicating increasing buying pressure.
Additionally, a bullish moving average crossover has occurred recently. The short-term moving average is now positioned above the long-term moving average, reflecting momentum shift that supports buyers' control. These factors further strengthen the constructive setup for VET.
Given the rounding bottom formation, supportive indicators, and key levels, VeChain (VET) shows promising technical scenarios for potential growth in the future.
