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VeChain (VETUSD) looks ready to break out again.
If you were here several weeks ago, you’d remember the 150% rally that ensued following the last breakout.
That was more than just a rally, though.
It represented a multi-year break above $0.01, which is just hours away from confirming on a monthly closing basis.
Note too how volume has increased in July.
That’s a positive sign for bulls as it shows an increase in market participation during the breakout.
Turning out attention to the daily time frame below, you can see how VETUSD has spent the last three weeks consolidating below $0.02.
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And just like the monthly time frame above, volume is increasing as VET tests the top of the bull flag pattern.
What’s interesting here is the measured objective.
If I take the distance of the last rally of $0.0138 and plot it against the recent consolidation low at $0.0142, I get an objective of $0.028 on the dot.
It’s interesting because $0.028 is VET’s all-time high.
It indicates, at least to me, that a daily close above this channel is likely to expose $0.028, which would be a 60% move from today’s price.
However, as I’ve stated since June, VeChain is a long-term investment, so I’m not trading this one.
That should tell you a lot about how bullish I am on VeChain, given that I’m up 90% at the time of this writing.
I think levels like $0.02 and $0.028 will serve as temporary hurdles on the path to much higher prices.
That’s just my opinion, as always.
Last but certainly not least, don’t underestimate the potential for a weekly rally from VETUSD.
The largest two-day move following the last breakout occurred between Saturday and Sunday with VET gaining over 60% just in those two days.
I’m not saying that will happen again, but ruling it out would be a mistake.
Disclaimer: I hold a position in VeChain as part of a multi-year investment portfolio.