VeChain (VET) Short-Term Bullish Reversal Potential: Technical and On-Chain Signals Suggest Tactical Entry Opportunity

VeChain (VET), the blockchain platform focused on enterprise and supply chain solutions, has recently attracted attention from traders and analysts due to a confluence of technical and on-chain signals suggesting a potential short-term bullish reversal. While the asset's market capitalization has slipped to the 78th position globally, raising concerns about its growth trajectory, a CoinStats report noted a shift in investor focus from Avalanche and VeChain to BlockDAG's $430M presale, suggesting broader market dynamics. Recent developments in technical indicators and whale activity present a compelling case for a tactical entry near key support levels. This analysis synthesizes these signals to evaluate VET's near-term prospects.

Dual TD Sequential Buy Signals: A Downtrend Exhaustion Play

The TD Sequential indicator, a popular tool for identifying potential trend reversals, has flagged two buy signals on VET's 4-Hour and daily charts, according to a CoinStats report. These signals, which occur when the indicator counts reach critical levels (typically 13 or 22), suggest that the current downtrend may be nearing exhaustion. According to the same report, the price of VET has fallen to $0.01486, a level historically associated with accumulation phases. Analysts interpreting these signals have projected a potential 7x price increase in the coming weeks, driven by renewed buying interest as sellers lose momentum.

This technical setup is further reinforced by the RSI 14 bullish divergence observed in recent weeks. As the price of VET has formed lower lows, the RSI has created higher lows, indicating weakening downside momentum, as noted in a Coinotag article. This divergence often precedes a reversal, as it reflects a disconnect between price action and underlying market sentiment.

Volume Surge and Whale Accumulation: On-Chain Confirmation

Technical signals alone are not sufficient to confirm a reversal; on-chain activity provides critical validation. Over the past 24 hours, VET's trading volume surged to $40.95 million, a 5.29% increase in price, reflecting renewed buyer participation, as reported in a Coinotag article. More notably, on-chain data reveals a significant net inflow of 30.99 million VET tokens, with 14.39 million tokens attributed to whale wallets, according to a OpenPR report. This accumulation by large holders suggests a strategic buildup of positions, often a precursor to upward price action.

Whale activity is particularly telling in the context of VET's dual-token model (VET and VTHO), which supports predictable gas fee dynamics and institutional adoption, as discussed in a DigiQt article. The quiet accumulation by whales-often characterized by large, infrequent transfers-indicates a belief in VET's utility and potential for future value appreciation. As one on-chain analyst noted, such behavior is typically observed before a shift from consolidation to visible price momentum, as reported in the OpenPR report.

Tactical Entry Considerations: Balancing Risks and Rewards

While the technical and on-chain signals are encouraging, investors must remain cautious. VET's market cap decline and the broader market's shift toward projects like BlockDAG highlight the competitive challenges VeChain faces, as noted in the CoinStats report. However, the confluence of TD Sequential buy signals, RSI divergence, and whale accumulation creates a high-probability setup for a short-term rebound. A tactical entry near the $0.0132 support level-a critical psychological and technical threshold-could offer favorable risk-reward dynamics, especially if the asset breaks above its recent resistance at $0.0175.

Conclusion

VeChain (VET) is at a pivotal juncture, with technical indicators and on-chain data aligning to suggest a potential short-term reversal. The dual TD Sequential buy signals, RSI bullish divergence, and whale accumulation patterns collectively point to a scenario where selling pressure is waning, and buyers are stepping in to accumulate at discounted levels. While the broader market environment remains uncertain, these signals provide a robust foundation for a tactical entry strategy. Investors who act decisively near key support levels may position themselves to capitalize on VET's potential rebound.