Like the rest of the crypto market, VET (VeChain) has pulled back aggressively from its all-time highs over the last few months.
But that trend may have changed on Wednesday.
VETUSDT has cleared a descending trend line that’s held the pair back since April. That could have massive implications for the pair over the coming weeks and months.
We’ll get to all of that in today’s issue. Plus, updates on BTC, ETH, ADA, and DOGE.
Let’s get it!
VETUSDT Breaking Out
Many of you know that I’ve been a huge advocate for VeChain. I was first buying it in June of last year when it was trading near $0.008.
I like the fact that VeChain has a working product and real clients. Not to mention the community is one of the largest in crypto.
That community’s resolve was put to the test over the last few months. At the recent low, VETUSDT was down nearly 82% in a matter of 33 days.
I don’t care who you are, that’s brutal!
That said, the market is also up 143% since its mid-July low. I was also tweeting about the breaking from $0.065 just a few weeks ago. It’s more than doubled since then.
Fast forward to today, and VETUSDT is about to break out from another level. This one extends from the all-time high from April.
I say “about to” because nothing is confirmed until VET closes the day above that trend line near $0.1315. Remember that the daily close occurs at 8 pm EST.
If VETUSDT manages that, we should see the market push higher into the $0.15 resistance area. A more accurate range for that area is $0.145 – $0.155.
A close above $0.155 would open up $0.18.
VeChain Vs. Cardano
These two have shared similar charts for the last three years. However, despite the similarities, many on Twitter get confused when I start comparing VET and ADA.
It’s not that VeChain and Cardano are similar in terms of companies or clients, or even goals.
The point is that the weekly chart is glaringly similar. There’s a technical correlation here.
Whenever ADA pumps first, VET follows. That’s what happened in February.
Then, in May, VET pumped first, and ADA followed.
Now that ADA is once again rallying first, it’s probably time for VET to play catch up.
Of course, it could also mean that both are about to pull back, and Cardano will outpace VeChain during the correction.
But given some of the trends I’m seeing, I think that’s far less likely.
Bitcoin is once again bouncing from the $46,000 – $47,000 support area today. It’s nice to see some signs of life after a lot of indecision on Tuesday.
However, BTCUSDT is still trading within the sideways range its been in since August 20th. It’s going to take a close below $46,000 or above $50,000 to change that.
My best guess is that we see a move up to $52,000 – $53,000. That will likely be a big test for Bitcoin.
Of course, BTCUSDT needs to clear the August 23rd trend line near $49,000 as well as the recent $50,000 high for that to occur.
Alternatively, as I mentioned, a close below $46,000 would open up $44,000.
ETHUSDT has been on fire this week. Buyers wasted no time sending prices to the $3,550 – $3,700 area following Tuesday’s close above $3,300 resistance.
As many of you know, Tuesday’s close marked the highest ever monthly close for Ethereum.
I still think the $3,550 – $3,700 area is key. It’s going to take a daily close above $3,700 to secure the next leg higher toward all-time highs.
If we do get a pullback, I’ll place a few bids just above $3,550. This is because not only was it a key level in May, but it’s also the location of two Fibonacci levels.
The first is the 78.6% retracement of the latest correction that began in May. The second Fib level is 23.6%, measuring from the August 9th consolidation low. Both of those levels line up at $3,550.
Cardano is hovering just below the $3 resistance level today. In fact, it’s been here since the 23rd.
The higher lows over the last week are what caught my eye. Usually, this suggests an imminent breakout. We’ll see if buyers can muster the strength.
It’s going to take a daily close above $3 to confirm the idea. Resistance above that is harder to come by. $3.30 could be key. Of course, the next psychological resistance above $3 is $4.
Only a break below $2.70 would negate the immediate bullish outlook.
I’m still in my DOGEUSDT long from the mid to high $0.27s. I’ve been posting this idea at length on Twitter since Tuesday.
The market has broken out of the smaller trend line near $0.28. It also bounced perfectly from the July trend line.
However, the critical test for DOGE is around the $0.30 handle. That’s the intersection of a key horizontal level and the descending trend line from mid-August.
A daily close above $0.30 would open the door to $0.35. My target for this trade is $0.40.
Lastly, I want to see volume start to increase steadily. That’s going to be a critical factor if DOGE has plans of breaking above $0.30.
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