How to Recognize False Breakouts

Contents

An upward breakout of the VET will confirm a bullish trend
CONTENT

  • VET is trading between $ 0.0155 resistance and $ 0.00095 support

  • Altcoin prepares to break the downward resistance line

  • RSI rallied above 50 level but is not signaling bullish divergence yet

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Vechain (VET) has been rallying since hitting a low on September 7. A breakout of current resistance will confirm the start of a new uptrend.

Bounce or bullish breakout?

The VET rate has been falling since August 9, when the maximum of $ 0.022 was reached. During the decline, the price formed several lowering highs and a line of downward resistance. However, the quotes managed to bounce off the $ 0.011 low on September 7.

An upward breakout of the VET will confirm a bullish trend

Since then, the altcoin has been growing, and at the time of writing the analysis it was trading near the resistance line.

This line also coincides with the $ 0.0155 resistance, a breakout of which will confirm a bullish trend. Meanwhile, immediate support is located at $ 0.0095..

VET Chart by TradingView

Technical indicators indicate an improvement in the picture, but do not yet confirm the upward trend:

  • MACD is rising, but has not yet entered positive territory
  • RSI rallied above 50 level but is not signaling bullish divergence yet
  • Stochastic Oscillator will soon form a bullish crossover

A bullish crossover and MACD in positive territory will confirm a bullish trend.

VET Chart by TradingView

Wave analysis

Cryptocurrency trader @ Crypto618 has a bearish outlook for VET and notes that the altcoin has completed a long-term bullish structure and will decline in the near future.

Source: Twitter

The VETH performance since July 8 resembles a correction in the A-B-C shape (orange in the chart below), which suggests that price found the bottom on September 4. The fact that the ratio of waves A: C is 1: 1.61 indicates a high probability that the correction has completed.

In addition, the current trend looks impulsive, possibly signaling the start of an uptrend. Thus, until the minimum of $ 0.11 is broken, the scenario with a new bullish momentum remains relevant..

VET Chart by TradingView

So altcoin VET appears to have started a new uptrend.

An upward breakout of the VET will confirm a bullish trend

A break of the $ 0.015 resistance will confirm an improved technical picture and price growth prospects.

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An upward breakout of the VET will confirm a bullish trend

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