Chart for VeChain/US Dollar
VeChain (VEN) made a stunning comeback during the recent crypto relief rally by surging 35% in the last 24 hours. The cryptocurrency
which was forgotten for a while after leaving the top 20 league has now once again become the 20th
largest coin by market cap. The price has yet to break out of the downtrend but it seems to have found support at the lower limit of what forms a falling wedge inside VeChain (VET)’s descending channel since the correction.
The price of VeChain (VEN) has yet to test the bottom of its descending channel but it already seems to have found support and is now bracing for a breakout. EMA alignment for VET/USD continues to remain bearish as the price struggles to break past the downtrend resistance. Elliot Wave Oscillator for VeChain/US Dollar also shows that the price has undergone the full extent of a correction and is now ready for a breakout at least for the near future. SMI indicator on the above chart also shows that the price has room for upward movement.
VeChain (VEN) is one of the few altcoins that can be expected to kick off the altcoin
rally. The reason for that is that these coins are now at critical points where they will have to break above or below in the near future to start a new cycle. As the above chart for VET/USD shows, VeChain (VEN) will have to make its move before September whether to the upside or to the downside. Considering what the market has been through and the slowing bearish momentum, it is plausible to assume that the breakout will most likely be to the upside as the chances of another bear market commencing from these level are extremely slim.
VeChain (VEN) looks extremely bullish on the VEN/BTC
daily chart above as the price has entered the extreme end of falling wedge and could breakout anytime now. The last time the price traded this further along a falling wedge,it broke out to the upside for the next few months. VeChain (VEN) is currently at a similar point and the breakout can be a lot more aggressive considering most technical indicators support a big breakout.
Wave Trend indicator for the chart above shows the price to have settled down for now and capable of making big movements to the upside in the next few weeks. The special stochastic oscillator on the above chart also indicates that VEN/BTC
has room to break out of the falling wedge in the days ahead. However, it will likely run into an EMA resistance before it can continue higher.
Short term, the EMA alignment does not look good as the 200 EMA will pass above the 50 EMA if the price falls further. This will be a bearish signal and the price could be expected to fall below the falling wedge if it goes through. However, given that the overall market has undergone the full extent of a correction and that bearish momentum has generally faded away, it is expected that the price will continue to surge in the weeks ahead.