- VeChain price just released from a well-defined inverse head-and-shoulders pattern on the four-hour chart.
- VET is struggling with resistance defined by the 61.8% Fibonacci retracement.
- The fastest-growing network in developing decentralized applications leads crypto market with 250% rebound.
VeChain price just broke out from a bullish formation on the four-chart after a period of intense volatility that was highlighted by a 250% rebound off the May 19 crash lows. The developing breakout is in the early stages, but it is a remarkable turnaround after an 85% decline from the April high.
VeChain price momentum gains traction in a nervous market
Last week, VET was adversely affected by the combination of new Chinese regulations governing cryptocurrencies and a deteriorating outlook for US interest rates. The result was a 51% weekly drop, the most significant weekly decline since prices began in 2018. In fact, VeChain price plummeted over 70% on May 19 before bouncing.
VeChain price has stabilized and responded to the historic sell-off with a 50% gain this week. The gain is nowhere near the largest weekly gains, but it does signify that FOMO is back in VET.
VeChain price has staged a tremendous recovery in just a few sessions, lifting the digital token above the 38.2% and 50% retracement levels of the complete April-May decline. VET is now above the 50 four-hour moving average and is testing the 61.8% retracement at $0.140 after breaking out from an inverse head-and-shoulders pattern earlier today.
If VeChain price overcomes the resistance at the 61.8% retracement, it should not meet any problems until the 200 four-hour moving average at $0.178 and then the 78.6% retracement at $0.189. A high volume breakthrough of these levels will leave VET poised to test the inverse head-and-shoulders measured move target of $0.216, representing a 78% gain from the neckline at the time of breakout.
Additional resistance that could interrupt a VeChain price advance is the May 7 high at $0.260 and then the all-time time at $0.282, printed on April 17.
VET/USD 4-hour chart
The fate of VeChain price will revert to a bearish narrative if it falls below the right shoulder low at $0.104.