VeChain's VET Token Surges 7.25% Amid Bullish Market Sentiment

VeChain, a blockchain platform, has recently broken out of its prolonged bearish trend, experiencing a significant surge in price and trading volume. The token, VET, has seen a 7.25% increase in the past 24 hours, trading near $0.0225 at the time of reporting. This upward momentum is attributed to a shift in overall market sentiment, increased trading volume, and strong long interest from investors and traders.

Technical analysis indicates that VET has broken out of a consolidation phase and a resistance level formed by a descending trendline. The asset has successfully closed a daily candle above this breakout level, suggesting an impending upside rally. The weekly chart also reflects a strong bullish outlook, with VET forming a bullish double-bottom price action pattern and showing a bullish divergence. This pattern suggests a potential upside rally in the coming days.

Another key factor supporting VET's potential upside is the support level at $0.019. Since November 2023, VET has hit this support level six times, each instance leading to a strong rally. Technical indicators across both daily and weekly charts show that VET may have broken free from its prolonged bearish trend and is now positioned for a sharp move upward. If bullish momentum holds and VET stays above $0.022, the token could climb as much as 40%, potentially reaching $0.032. However, falling below the $0.022 level could trigger either a pullback or sideways movement.

Despite recent gains, VET was trading under its 200-day Exponential Moving Average (EMA), indicating that it hasn’t fully exited the broader downtrend. On-chain metrics show bullish sentiment among traders, with the Binance VETUSDT Long/Short Ratio standing at 1.92. This metric shows that 65.76% of traders were holding long positions, while 34.24% were in short positions. Traders are currently overleveraged at $0.0208 on the lower side and $0.0229 on the upper side, indicating that bulls are currently dominating the asset and the price may continue its upside momentum in the coming days.