- The VeChain price breaks away from the crucial Fibonacci expansion level.
- Successive weekly dojis indicated a resumption of the trend.
- Weekly Relative Strength Index (RSI) near historic highs.
The Vechain price is already up 22% and the momentum shows no signs of easing. The breakout above the Fibonacci extension of 3.618 of the 2018-2020 bear market at $ 0.097 is relief for the bullish speculators after failed attempts over the past three weeks.
The VeChain award reflects the intensified testing of the network in China
Since November 2020, vocational training has kept the 10-week simple moving average (SMA) religious at the end, thus establishing an increased trend for digital tokens. Unlike other pullbacks, the 25% March correction stayed well above the major moving average and all major retracement levels of the 2020-2021 bull market.
With the trend resuming, traders will need to focus on the 2018-2020 bear market’s 4.618 extension level at $ 0.124 as the first resistance level. A more believable target is the 2.618 extension level of the March decline at $ 0.141, which is a 26% gain from current price.
More aggressive traders need to focus on extending the March correction by 3.618 at $ 0.166. This is a 50% gain from current price, but given the extent of the breakout and volume exposure, this is a reasonable forecast.
VET / USD weekly chart
Multi-period charts suggest $ 0.097 as critical support for the rally and any weekly close below that level will immediately shift the outlook to neutral. Subsequent support is the March low at $ 0.075, followed by a combination of the 10-week SMA and the 0.382 retracement level of the 2020-2021 advance at $ 0.070.
If the critical moving average does not hold onto a weekly close, it is a signal that the trend has changed and a much deeper correction is underway. The retracement level of 0.50 is at $ 0.057 and the retracement level of 0.618 is at $ 0.044.