VeChain (VET) Breaks Out of Bullish Pennant Pattern, Signaling Potential Continuation of Upward Trend

VeChain (CRYPTO: VET) has grabbed the attention of the market with a sharp breakout from a bullish pennant pattern, hinting at a possible continuation of its upward trend after weeks of consolidation.

This breakout, accompanied by a 42.54% surge in trading volume, comes as VET trades at $0.05218, notching a 10.4% gain over the past 24 hours at press time.

As the price surges, a crucial question arises: Can VeChain sustain this rally and breach key resistance levels? Let's analyze the price action, technical indicators, and market signals to assess VET's outlook.

Price Action Analysis: Bullish Pennant Flag Breakout

VeChain's price action has formed a bullish pennant pattern, which is now breaking out to the upside on increased volume.

This bullish technical formation suggests strong momentum in the upward direction. The breakout from the pennant also signals a potential continuation of the prior uptrend.

After consolidating within a narrow range, VET is finally making a strong move, which could set the stage for further gains.

However, if the price encounters resistance at higher levels, it may trigger a retracement, so traders should monitor price movements carefully.

Technical Indicators: Signals Of Continued Strength

A glance at key technical indicators reveals a bullish narrative. The Relative Strength Index (RSI) is positioned at 51.19, indicating potential for further growth before entering overbought territory.

Moreover, a positive trend is signaled by the Moving Average (MA) cross between the 9-day ($0.04943) and 21-day ($0.05593) moving averages, which suggests a bullish bias among traders.

These technical indicators lend credibility to the breakout, suggesting that it is backed by technical strength, and traders are likely positioned for further gains.

Social Dominance: A Slight Decline

While VET's price surges, its social dominance has experienced a drop, declining to 0.1% from recent peaks above 0.7%.

This could reflect a temporary lag in social media attention compared to its price performance.

However, this divergence may also suggest that the breakout is being driven by larger market participants, as opposed to speculative retail activity, which could lend further credibility to the move.

Open Interest And Liquidations: Rising Confidence

According to Coinglass, open interest has increased by 13.11%, now amounting to $88.23 million, reflecting renewed confidence among derivatives traders.

Total liquidations reveal $28.56K in long positions and $646.46 in short positions, indicating cautious optimism rather than excessive exuberation.

The balance between these metrics suggests a healthy market structure, supporting the potential for sustained growth.