- VeChain signals bullish reversal as rare TD indicators spark optimism.
- Analysts spot signs of recovery amid VeChain’s growing development activity.
- Technical charts hint at breakout potential after weeks of bearish pressure.
VeChain (VET) is beginning to attract attention again after showing rare buy signals that could mark the end of its recent downtrend. According to market analyst Ali Martinez, two uncommon TD Sequential indicators, an “aggressive 13” and a “red 9,” have appeared on VET’s daily chart, signaling that selling pressure may soon weaken.
These patterns often appear when the market is preparing for a reversal, hinting that bullish momentum might be building.
VET currently trades around $0.0148, stabilizing after dipping to $0.0133 earlier this week. Despite a 25% drop in trading volume within the past 24 hours, the token has gained more than 5% recently, suggesting that investors may be positioning for a recovery. Even with a 36% monthly decline, the token’s latest movements show early resilience as buyers begin to re-enter the market.
Besides, VeChain’s on-chain strength adds confidence to this potential turnaround. Data from Chain Broker shows that VeChain ranks among the top three blockchains for development activity growth, with a 620% increase in recent months. This performance places it just behind Ripple and IOTA, highlighting steady ecosystem progress despite market pressure.
Technical Signals Indicate a Potential Breakout
On the technical front, VET remains under a long-term descending trendline but is holding above a crucial support range between $0.0132 and $0.0145. This area has served as a demand base multiple times throughout 2024, reinforcing it as a key zone for traders watching for a rebound.
Moreover, narrowing Bollinger Bands points to decreasing volatility — a condition often preceding significant breakouts.
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Source: Tradingview
The Relative Strength Index (RSI) is at 35.9, close to oversold territory, suggesting that downward momentum could be easing. The MACD lines are converging while the histogram shows signs of improvement, both pointing toward a potential bullish crossover.
However, the Chaikin Money Flow (CMF) at –0.13 and the Balance of Power (BoP) at –0.44 reveal that sellers still maintain slight control over the market.
Analysts Expect a Bullish Reversal Ahead
If VET manages to break and close above the descending trendline near $0.0165, analysts expect a strong rally toward $0.0187, with the possibility of extending to $0.0205 if momentum continues. Conversely, failing to hold the support zone near $0.0132 may lead to deeper losses toward $0.0115.
According to Ali Martinez, the convergence of both TD Sequential buy signals near recent lows often marks a shift in trend direction. Hence, the current chart setup combined with VeChain’s growing development activity suggests that the token could soon enter a recovery phase. While confirmation is still needed, optimism is slowly returning as technical indicators align for a potential major price reversal.
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