VET price jumps 6% and could reach a new all - time high

By Aubrey Swanson·23 October 2020·2 min read

Key Points

VeChain faces a pivotal moment in its recovery.
The token dropped over 60% from its August peak, a sharp reversal that sent prices from $0.023 down to $0.010.
But recent price action on shorter timefr

VeChain faces a pivotal moment in its recovery. The token dropped over 60% from its August peak, a sharp reversal that sent prices from $0.023 down to $0.010. But recent price action on shorter timeframes signals reversal. VET traces higher highs on the daily and intraday charts. The weekly outlook has improved as well. The move comes amid broader strength in the altcoin sector. Bitcoin surged past $13,200, and Ethereum and ChainLink joined the rally, pulling alternatives higher.

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The technical picture offers encouragement to buyers. VeChain spent more than a month trading below the $0.013 resistance level, unable to push through despite several attempts. The chart has developed a series of Doji candlesticks, a pattern that precedes directional moves. The TD Sequential index flashed a red 8 on the weekly timeframe. Should a red 9 form, the buy signal would confirm, suggesting bears are losing conviction.

On the daily chart, VET shows strength. The 12-period EMA crossed above the 26-period EMA, creating a bullish divergence on the MACD. RSI readings climbed. These indicators support the case for buyers pushing prices toward higher ground.

Breaking through and holding the 50-day moving average becomes the next hurdle. Above that lies the 100-SMA near $0.012, followed by September highs at $0.015. Clear those levels and bulls target the August 9 peak around $0.023. A run beyond that would mark a new all-time high.

Support sits at the 200-SMA at $0.0112. A break below that floor would send prices back through $0.010 toward lower levels near $0.009. VET trades around $0.0120, posting a 6% gain for the day.

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