Staking Incentives and Technicals Set VeChain Up for Possible Breakout

VeChain (VET) has recently shown signs of technical strength, with key indicators suggesting a potential bullish turn amid ongoing consolidation. Traders and analysts are closely monitoring whether these signals will lead to a breakout or sustained uptrend.

Currently, VeChain is trading below its 20-week moving average at $0.02439, having recorded a 3.99% gain in the past 24 hours. Despite the consolidation phase, the token maintains a market capitalization of $2.09 billion, supported by 86 billion VET in circulation. Analyst Michael van de Poppe has pointed to VeChain as a project with strong potential, particularly due to its staking incentives through the Stargate program and its relatively low valuation.

Technical analysis reveals a double-bottom pattern forming, with key support levels identified near $0.015 and resistance between $0.035 and $0.04. Fibonacci extension levels project potential targets at $0.068 and $0.12, suggesting that a breakout could see significant upward movement if momentum strengthens. The market remains in a neutral state, with the RSI at 53.17 and the MACD showing slight downward pressure but with a narrowing gap that may support stabilization or a shift toward an upward trend.

Staking programs continue to drive demand and network utility. VeChain’s Stargate initiative has seen consistent participation, with investors drawn to the staking rewards. Open interest in VET derivatives has also grown steadily, rising by 3.6% to $34.3 million. This increase is concentrated on platforms like Binance and Bybit, indicating renewed interest and positioning for short-term price moves. The growth in derivatives activity aligns with ongoing accumulation, adding to the token’s positive outlook.

The broader crypto market environment is also influencing VET’s trajectory. Bitcoin and Ethereum have shown bullish momentum, with Bitcoin trading at $68,450 and Ethereum at $3,650 as of June 17, 2025. Analyst Michaël van de Poppe highlighted that projects with solid fundamentals, including DeFi, RWA, AI, and DePIN sectors, are gaining attention. VeChain, with its focus on supply chain solutions and integration of RWA, is among these projects building momentum. This market trend supports the view that VET could benefit from increased capital flows into innovative crypto sectors.

On the technical side, VET is testing resistance at $0.036, with support at $0.032 on the 4-hour chart. On-chain data, including a 25% increase in VET transaction volume to 12 million in the last 24 hours, further supports the growing utility and adoption of the token. The correlation between traditional stock indices and crypto prices remains a key factor; the S&P 500 and NASDAQ both showed positive movements, aligning with crypto inflows and risk-on sentiment.

While the bullish technicals and market context are encouraging, traders are advised to remain cautious of potential volatility, particularly if the broader market experiences a reversal. The RSI for Bitcoin and Ethereum currently stands at 62 and 60, respectively, suggesting there is still room for upside but also highlighting the importance of monitoring overbought conditions.

In summary, VeChain is navigating a consolidation phase with technical and market indicators pointing to potential for a breakout. The token’s staking incentives, growing open interest, and alignment with broader crypto trends present a compelling case for cautious optimism among traders and investors.