VeChain (VET) is a cryptocurrency I bought and also wrote about on this site in 2020. Ten months later, it was up 3,000%.
While I don’t think we’ll see a similar move for some time, VET could be on the brink of a 40% rally.
Get all the details and see exactly how I’m trading it in today’s video.
To fully understand the VeChain chart, we must go back to the most recent crypto bear market.
Like most cryptocurrencies, VET went through a bear market between 2018 and most of 2020.
And also, like most cryptos, VET saw incredible gains as it came out of this bear market, especially between November of 2020 and April of 2021.
From the bear market low to the 2021 high, VET produced an astounding 17,000% gain. Not as much as some other cryptos, but certainly nothing to sneeze at either.
Now, let’s talk about the weekly chart and what happened this past January before discussing the potential setup.
As you can see from the chart above, VETUSDT (VET against Tether) broke below its bear market trend line in January.
This trend line served as resistance for VeChain throughout the recent crypto bear market.
That is until February 2021, when VET went parabolic above this level, gaining an additional 700% in 10 short weeks.
However, VET closed back below this 2018 trend line last January, which means it’s again serving as resistance.
VeChain tried to get back above it in February but ultimately failed.
All of the above is incredibly significant because it helps to frame any future rally attempt from VET and offers a clear target area.
So with that, let’s discuss what could be a very profitable long opportunity in the coming days.
At the moment, VETUSDT is still trading below resistance, so there is no confirmed setup yet.
That said, a daily close above $0.05 would confirm the breakout from descending channel resistance that extends from the December 27th high.
My target will be the $0.07 area if it sets up, which is very close to the 2018 trend line discussed above.
Although it may not sound like much, a move from $0.05 to $0.07 is a 40% gain.
Keep in mind that this setup for VETUSDT is pending as of this post. Only a daily close above $0.05 will do that.
Until then, $0.05 is resistance with key support at $0.044.