VET Price Surges as VeChain Breaks Out of 21-Month Accumulation
The price of VeChain’s native token, VET, has experienced significant growth in the third week of February. Over six consecutive days, the price rose by 61%, jumping from $0.0295 to $0.0477. This recovery can be attributed to the recent upgrade on the VeChain ecosystem, with Account Abstraction (AA) going live and breaking out of nearly two years of accumulation.
Formation of Rounding Bottom Pattern Signals Trend Reversal
Prior to this surge, VeChain’s price had been struggling to surpass the $0.04 resistance, leading to a 21-month consolidation period. However, the sideways trend during this period indicates the formation of a rounding bottom pattern. This pattern often develops at the bottom of a major bear cycle and paves the way for a new rally. In mid-September 2024, influenced by this pattern and a broader market rally, VET entered a new correction.
Account Abstraction Upgrade Enhances VeChain’s Ecosystem
VeChain’s recent recovery gained momentum with the launch of Account Abstraction (AA), which enhances its blockchain ecosystem with seamless interoperability and programmable smart contract wallets. This upgrade aims to improve user experience and security, making digital asset management more intuitive and customizable. The introduction of AA marks a significant step in VeChain’s evolution, attracting more users and developers by simplifying blockchain interactions and bolstering security.
Price Target: $0.065
The breakout from the multiple-month consolidation below $0.04 signals an early sign of trend reversal and provides support for the development of a rounding bottom pattern. Under the influence of this pattern, the VET price could rise to the $0.089 neckline resistance. However, there may be a pattern of 50-61.8% retracement before the price continues its upward trend.
Technical Indicators
- Exponential Moving Average (EMA): The coin price trading above daily EMAs (20, 50, 100, and 200) reflects a positive shift in the market.
- Average Directional Index (ADX): The rising ADX value at 30% suggests that buyers may need a pullback to regain strength.
Source: Coingape
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