VeChain (VET) Price Prediction: Will VET Hold its Breakout and Move towards $0.05?

VeChain [VET] recently broke out of its multi-year descending channel, generating renewed bullish optimism and attracting significant attention.

VeChain [VET] recently broke out of a multi-year descending channel, sparking bullish sentiment and close monitoring. At press time, VET was trading at $0.03254, showcasing a 0.82% decline over the last 24 hours.

The token had dropped from $0.035 in recent days, and social dominance had decreased from 0.242% the previous day to 0.181%. Despite these declines, can VET sustain its breakout and move toward $0.05?

2 factors hint at a bullish continuationVET’s breakout positioned it close to the key $0.035 resistance level. A strong daily close above this level could pave the way for a rally to $0.05, a major target supported by the 4.236 Fibonacci extension level.

However, the Fibonacci retracement also highlighted $0.0319 as an important support zone if prices consolidate.

On the daily chart, the Relative Strength Index (RSI) sat at 64.8 at press time. While this meant that momentum was still bullish, it also signaled a cautious approach as VET neared overbought territory.

Therefore, if buying activity strengthens, the price could break above resistance levels and continue its upward movement.

Social dominance reflects mixed sentimentSocial dominance for VET had declined from 0.242% the previous day to its press time level of 0.181%. This significant drop showed reduced discussions around VET on social platforms, which could slow down speculative interest.

Consequently, higher engagement and renewed social activity were needed to maintain the momentum and attract more traders into the market.

Liquidation data reveals potential volatilityLiquidation metrics showed that $41.5K worth of long positions had been liquidated, compared to just $5.96K in shorts. This imbalance suggested that bullish traders still dominate, but it also highlighted the potential for volatility.

If long liquidations increase further, this could negatively impact VET’s ability to sustain its current levels.

Open Interest points to increasing confidenceOpen Interest for VET had risen by 0.69%, reaching $48.94 million. This steady increase indicated growing trader confidence and market activity around VET.

While rising Open Interest often supports sustained price movements, it may also lead to heightened price volatility, especially as VET approaches critical resistance levels.

Will VET hold its breakout?VeChain’s breakout from the descending channel has positioned it for a potential rally toward $0.05.

However, the decline from $0.035 and reduced social dominance suggested challenges in sustaining momentum.

If VET closes above $0.035 with renewed volume and engagement, a rally to $0.05 is likely. Failing to hold current levels, however, could lead to short-term consolidation. For now, the bias remains cautiously bullish.