The crypto market successfully bounced from support with major cryptocurrencies recording profits over today’s trading session, VeChain (VET) follows the general sentiment. The cryptocurrency has been able to preserve some of its gains from yesterday’s session and seems poised for further highs.
At the time of writing, VeChain (VET) trades at $0.023 with a 2% profit in the last 24 hours and a 5% profit over the past 7 days. In higher timeframes, the cryptocurrency records significant losses, but in the short term, this trend might be starting to reverse.
VET’s price shows a positive reaction as the crypto market rebounds on the 4-hour chart. Source: VETUSDT Tradingview
VeChain Price About To Breakout?
According to analyst Justin Bennett, the price of VeChain has been forming a falling wedge structure. This price pattern has been in the making since August 2022.
At that time, VeChain saw an important rally after months of trading sideways between its current levels, and a high of around $0.03. In August, VET’s price attempted to break out of this range but was rejected from those levels.
This led the price to a massive decline and the formation of the falling wedge. As VeChain moves at the lows of its range, and with the crypto market bouncing from a critical support zone, VET’s price might be ready to take off, as seen in the chart below.
Per Bennett’s analysis, VeChain might grind higher and touch levels north of $0.03. At that time, bulls need to make a final push to confirm the breakout and reclaim the area around $0.04. Bennett said: “$VET is starting to look attractive at this range low combined with the falling wedge since August.”
VET’s price ready to push to the top of this channel? Source: Justin Bennett via Twitter
VeChain Price To Follow This Bitcoin Pattern
The fate of VeChain’s price action, and the fate of a large portion of the crypto market, is tied to Bitcoin. The number one cryptocurrency by market cap has been leading the current rally as macroeconomic forces operate as headwinds to any bullish momentum.
As NewsBTC reported yesterday, based on Bennett’s analysis, Bitcoin is also at the bottom of a major channel. As seen below, the cryptocurrency has been operating with $18,700 as a bottom and might be on the verge of reclaiming $26,000, the top of its current range.
After a period of consolidation, bulls could have enough ammunition to push the price into those levels, and take the liquidity created by short positions expecting further losses. As long as Bitcoin stays above $18,700, VeChain has a fighting chance.
Same $BTC ascending channel.
The price action is a mess, but that $18,700/800 area has been solid since the 21st.#Bitcoin https://t.co/ICHbqXXNf1 pic.twitter.com/stChhZ7EnW
— Justin Bennett (@JustinBennettFX) September 29, 2022