Analyst: VeChain Enters the Buy Zone, Should You Jump In?

On the weekly time frame, a crypto analyst named Egrag pointed out on Twitter that VeChain (VET) is currently in a buy zone. He further explained using the description of its likely price action trading chart and noting recurring patterns.

Vet is in green todayHolding on to gains from yesterday’s close.

Analysis of Aggreg on VeChain (VET)

Egra mentioned Attempt to break out of the descending channel of VET and into an uptrend in your analysis. The asset remained in a descending channel as it declined from its all-time high of $0.2782 in April 2021. According to Egrag, VET attempted to breakout from this descending channel Five times Earlier

He added that the more VET attempts, the higher it will break from its current channel to the upside. Also, the analyst added that VET could form a double bottom. A double bottom is a technical chart pattern where an asset’s price hits its low point twice, with a slight recovery in between.

A double bottom is often associated with a trend reversal, as well as a potential break to the upside for an asset.

The analyst believes that this pattern could take place at the $0.015 price level or $0.007 area if the asset price declines further. Historical data shows that the last time VET reached this price level was in June 2020.

Aggregate set three targets for the asset as pivot points to exit the descending channel. His price targets are $0.0648, $0.11649, and $1.66. He believes that VET will repeat its previous price action in 2018 as it remained in a descending channel until it broke in 2020.

The breakout reached its all-time high Value of $0.2782 On April 17, 2021. In conclusion, the analyst said that VET is currently in a buy area Which provides an attractive buying opportunity to the traders.

The weekly chart of VET shows a buy zone between $0.012 and $0.025. The asset entered this zone in December 2022 and traded there until January 2023.

VET price action analysis

VET is currently in a lateral trend On the weekly chart, however, if the analysis holds true, the coin could see some action in the near term.

The sideways trend of VET since December 2022 initiated an uptrend in March 2023. Therefore, if history repeats itself and VET is able to break out of the descending channel, the current sideways trend in the coin’s price could be broken to the upside in the coming weeks.

Relative Strength Index (RSI) 41.89 is in the neutral zone, which shows the trend on the weekly chart. However, this will be reversed if the bulls prevail. But VET is trading below its 50-day and 200-day Simple Moving Average (SMA)Bearish signal for the asset.

This fact, combined with a descending channel and price consolidation, could signal a fresh decline. If VET fails to target and reach higher levels, the bears could once again take control and send the coin back to key support.

VET is currently trading at $0.01943 Price Level And may move up to $0.06 if it corrects in the coming weeks.

Featured Image from Pexels, Chart from TradingView