VeChain has recently shown signs of a bullish breakout, with the token trading at $0.02225 as of press time, marking a 2.14% increase in the last 24 hours. The potential for VeChain to break through the key resistance level of $0.05 has garnered significant attention from market participants, as it could pave the way for further price appreciation.
With a 24-hour trading volume of $18.85 million and Open Interest growing by 3.48%, there is a sense of optimism surrounding VeChain’s price action. Traders are closely monitoring whether VET can double in value, making the $0.05 resistance level a crucial focal point in the near term.
Technical indicators suggest a bullish sentiment for VeChain, as the token recently broke out of a descending channel that had constrained its price movement. This breakout was accompanied by a surge in both volume and price momentum, signaling a potential shift towards bullishness. VET’s price has surpassed key technical indicators, such as its 9-day Exponential Moving Average (EMA) of $0.02170, further supporting the bullish outlook.
However, caution is advised in the short term, as the Relative Strength Index (RSI) on the 1-hour chart sits at 50.68, indicating neutral momentum. Additionally, the Moving Average Convergence Divergence (MACD) line crossed slightly below the signal line, suggesting a possible slowdown in momentum. Despite this, the histogram shows minimal divergence, implying that the trend could remain sideways in the near future.
The Open Interest (OI)-Weighted Funding Rate for VET remains positive at 0.0099%, indicating that long positions are paying funding fees to short positions. This positive Funding Rate reflects traders’ optimism about VeChain’s prospects, despite brief dips into negative territory in mid-August signaling short-term bearish sentiment at the time.
VeChain has experienced a 26.58% increase in trading volume to $18.21 million, with its Open Interest in Futures contracts rising to $28.70 million. This surge in volume and Open Interest reflects growing market participation and interest in the token.
Overall, the indicators suggest a growing interest in VeChain, with the token’s Total Value Locked (TVL) at $80.26 billion according to DefiLlama. However, traders remain cautious as they await confirmation of a breakout above the critical $0.05 resistance level. As VeChain continues to approach this key level, market participants will be closely monitoring its price action for further insights into its potential price trajectory.
