Bitcoin and Ethereum have witnessed strong recoveries over the past 24-hours. While BTC was above $55,000, Ether managed a position above $4300 at the moment. The trend indicated a bullish shift for other coins as well, but some Altcoins were still lagging behind. Vechain is currently one of those assets, which, irrespective of recovery, remains under the bearish realm. In this article, we will analyze the market setup for the VET token and identify its possible bullish outlook.
Vechain 4-hour time frame
Vechain witnessed a recovery of 4% over the past day. While its market cap increased up to to $7.7 billion, the asset continued to oscillate between a descending parallel channel. Now the pattern technically carries bullish implications, but the price has to move above the channel. At the moment, the asset faces strong resistance from the 20-EMA and 50-MA(Moving Average). However, another key bullish sign is the recovery from the demand zone of $0.108-$0.100.
Right now, in order for Vechain to confirm a bullish bias, it needs to cross above the Fibonacci line of 0.618 i.e., $0.122. A positive candle closes above this price range will allow the asset to move forward in the chart.
Market Indicator
The market indicators indicated a bullish to neutral trend for VeChain. At press time, RSI remained under the 50-line, which means selling pressure is still dominant. However, it is moving in the upwards direction, indicative of rising buying pressure.
MACD suggested a bullish trend reversal as the MACD line hovered over the signal line. Similarly, On-Balance Volumes suggested exhaustion of selling pressure.
How to invest in VeChain
At the moment, investors should wait until VeChain rises above $0.122 and confirm a bullish bias. Until then, the trend remains on the neutral ground, indicative of reversal volatility.