VeChain has seen a recent four-month rally, which only recently managed to die down. However, depending on the metrics you trust on the matter, a massive breakout event could happen, once more, which could see massive new highs for the currency.
VeChain Getting The Best Of Things
Of all the various cryptocurrencies the world has to offer thus far, VeChain stands as one that’s had a very good year of 2020. The pandemic may have caused a massive amount of chaos for the crypto industry at large, especially during Black Thursday, when March saw the crypto industry halve in value, Vechain stands a little apart. With its VeChainThor technology, currently being tested across an array of industries. There, the blockchain is providing solutions to real-world problems across the globe.
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Even Bayer stands as one of the largest pharmaceutical companies the world has to offer, and has recently announced that it will implement VET into its supply chain management. In particular, the big pharma company will implement the traceability solution to create a more practice, cost-effective, and efficient supply chain management solution.
Bullish Signs All Round
As one would imagine, many eyes are now settling on VeChain Foundation, and its constant strive towards achieving wide-scale adoption of its technology. As the prices show, investors are showing extreme confidence in VET. The supply-chain management blockchain token has managed to go up by 214% since the start of 2020, with more room to grow being apparent.
As it stands now, the price action of VET has started to form a descending triangle these past few weeks. What this means, is a new horizontal trendline has started to form along the swing lows, with a descending trendline along the swing highs. Through some simple maths of measuring the distance between the technical formation’s highest points, adding that to the breakout point, an upside target has been set for 34%.
Crunching The Data
The TD sequential indicator, in turn, is suggesting that the price will stay relatively contained within this triangle for an extended period of time, before the eventual breakout. At VET’s 4-hour chart, the technical index presented a sell signal through a green nine candlestick. This bearish information can lead to a correction of one to up to four candlesticks, or start a new downward countdown instead.
Historically speaking, each time the TD setup presented a sell signal around a triangle’s hypothenuse, there was a definitive trend. Particularly, the prices retraced all the way back to the x-axis, bouncing back up after. Should history repeat itself, VET will see a drop down to $0.0155 before a rebound all the way to the overhead resistance. With any luck, a breakout will occur there.