VeChain (VET) Is Showing Promising Signs of Recovery After Enduring a Period of Extreme Turbulence

VeChain (VET) is showing promising signs of recovery after enduring a period of extreme turbulence and a sharp decline in value due to broader market instability.

In the wake of turbulent times and a steep decline in value amid broader market instability, VeChain (VET) is displaying promising signs of recovery.

Over the past 30 days, VET has seen a 39% drop from its peak, while the last seven days alone saw an 18% decline, reflecting the overall bearish trend in the crypto market. However, as Bitcoin leads a fresh surge, altcoins, including VeChain, are beginning to regain momentum, hinting at a potential trend reversal.

At the time of writing, VeChain is priced at $0.027552, with a 24-hour trading volume of $88.12 million and a market capitalization of $2.23 billion. Despite the recent downtrend, VET has managed a 0.14% price increase in the last 24 hours, suggesting that buying pressure is gradually returning.

Gearing Up For A Potential Rally

Technically, VeChain is forming a descending wedge pattern, a well-known bullish reversal indicator. This formation occurs in a downtrend when price action creates a series of lower highs and higher lows, converging into a wedge shape. As the wedge narrows, volatility diminishes, and the trend is nearing exhaustion.

Once the price breaks out of the wedge in the direction of the prevailing trend, a significant move in that direction can be anticipated. A breakout above the wedge resistance could signal a bullish shift, setting the stage for further gains. Conversely, a breakout below the wedge support could confirm bearish dominance and likely lead to additional declines.

The key support zone for VET lies between $0.025 and $0.027, a strong accumulation area where buyers have historically stepped in. A breakout above $0.035 would be required to confirm bullish dominance and pave the way for further gains.

If bullish momentum sustains, VeChain could target $0.05925 as its first major resistance level, followed by $0.07697 as the second target. In an extended rally, VET could aim for its ultimate bullish target at $0.09725.

However, if bearish pressure resurges and break support at $0.025, it could lead to a continuation of the downtrend, with the next support level at $0.01697. A breakout below this zone could open the door for further declines to $0.008225.

Considering Bitcoin’s ongoing surge and improving market sentiment, VeChain appears well-positioned for a potential comeback in the coming days. Nevertheless, the next few days will be crucial in determining whether VET can sustain its recovery or if further consolidation is needed before a breakout occurs.