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I’ve been talking about VETUSD since June 26th.
VET, the native token of the VeChainThor blockchain, is a cryptocurrency with tremendous potential as cryptos enter a new cyclical bull market.
We saw some of that potential unfold between May and July when VET rallied 440%.
However, since reaching a local high of $0.0229 on August 9th, VETUSD has pulled back.
That’s perfectly normal and healthy.
So far, VETUSD has pulled back to the 61.8% Fibonacci level of the March to August range.
The pair has also recently started to carve a descending channel.
Those familiar with the way I analyze a market will recognize this as a downward sloping flag.
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Similar to a falling wedge, the structure above hints at exhaustion from sellers.
But as of this post, VETUSD is holding below channel resistance near $0.0118.
And as I mentioned last weekend, ideally, VET needs to secure a weekly close above the $0.0121 area to confirm the breakout.
In addition to the channel above, VeChain’s token is also forming a potential inverse head and shoulders on the 4-hour time frame.
The pattern below hints at a move to $0.0150 if confirmed.
The one thing that’s still missing is an increase in volume.
So, if VETUSD does manage to take out the levels discussed above, I’d like to see a simultaneous ramp in volume.
All of that said, I continue to like the token much higher over the next 16 months.
Disclosure: I hold a VETUSD long position.