Introduction

Vechain's price has been attempting to break out of a critical resistance zone between $0.023 to $0.0266. This zone has alternated between support and resistance in the past, making it a key level to watch.

Down Channel Formation on the Daily Timeframe

On the daily timeframe, VET has been trading within a long-term down channel since mid-February 2024. After hitting support in August, it is once again testing the resistance of this channel. If the price can break out, it may signal a bullish reversal.

Long-Term Resistance at $0.052

A successful breakout from the down channel could push Vechain towards its next resistance level at 5.2 cents, a price that previously acted as both support and resistance. However, even beyond that, there is a more ambitious long-term target based on a breakout from a larger falling wedge pattern on the 7-day timeframe. The ultimate technical target sits between 28 to 30 cents.

Potential Support Levels

If VET fails to break out of the down channel, it may retest support around $0.015 to $0.014. However, the bullish nature of the pattern suggests a breakout is more likely.

Conclusion

Vechain's price action is at a critical juncture. A successful breakout from the down channel and resistance zone could open the door to significant price increases. Traders should watch closely as the price nears key resistance levels.