By Chris Hollingworth 
VeChain, currently ranked as the fifteenth-best token by market capitalization, has witnessed a notable recovery driven by strong fundamental news. Market participants are eagerly anticipating the launch of the VeChainThor Blockchain Mainnet by the end of June.
Weekly Chart:
From mid-November to mid-December of the previous year, VeChain (VEN) traded within a tight range before embarking on an uptrend at the end of December. This upward momentum propelled VEN from a low of 0.00002184 on November 30 to a high of 0.00081678 on January 22 of this year, delivering a remarkable 3639 percent return within two months. Following a correction, VEN found support near the 61.8 percent Fibonacci retracement level at 0.00032752 and hit a low of 0.00031748 on March 30. With a strong breakout from the downtrend line, VEN may target 0.00062102 levels, potentially encountering resistance before retesting previous highs.
Daily Chart:
Analyzing the daily chart, the VEN/BTC pair has broken out of an inverted head and shoulders (H&S) pattern, suggesting a minimum target objective around 0.00063 levels. This aligns closely with overhead resistance at 0.00062102, indicating a possible dip or consolidation at this level. Support is situated at 0.00047, followed by the neckline of the inverse H&S pattern.
Trading Strategy:
For existing holders, holding positions as VEN approaches 0.00062 is recommended, with potential for a pullback or consolidation at resistance. Traders can consider booking a portion of their position at higher levels and looking to re-enter on a dip. Long-term holders may opt to raise their stop-loss levels given a potential move towards lifetime highs.
Prospective buyers should monitor a potential dip towards the 20-day EMA, setting a stop loss at 0.0004 below the 50-day SMA. Failure to maintain bullish momentum could lead to a retest of 0.00032 levels. Alternatively, traders can wait for a breakout following consolidation at resistance, signaling a resumption of the uptrend with a target towards lifetime highs at 0.00111242 levels. Given the volatile nature of cryptocurrencies, it’s advisable to adjust stop-loss levels to secure profits.
In conclusion, the analysis is based on market data provided by HitBTC exchange, with charts sourced from TradingView. Investors are encouraged to conduct thorough research and exercise caution when making investment decisions.
