VeChain price action could be on the verge of a bullish breakout. The cryptocurrency has been trading in a descending wedge pattern since its peak in December and is now showing signs of bullish momentum build-up.
VeChain price could be the next to achieve a significant upside now that the altcoins are achieving some recovery. VET had a $0.026 press time price tag, after a 4.63% upside in the last 24 hours.
While this may not seem like much, it was noteworthy because it was the first breakout attempt in a while. VeChain price action has been moving within a descending wedge pattern for almost 4 months. It broke through its descending resistance in the last 24 hours.
VeChain price action | Source: TradingView
Aside from pushing through its 4-month resistance line, VETs RSI and MACD confirmed signs of a bullish momentum build-up.
VeChain price action matches spot and derivatives activity
VET spot flows have been relatively weak in the last 3 months especially compared to their peak flows in December last year. However, spot flows have mostly leaned on the bearish side, but shifted onto positive flows in the last 3 days.
Nevertheless, spot flows remained relatively weak. For context, spot inflows in the last 24 hours amounted to $452,850. Things were much more interesting in the derivatives segment.
For example, open interest amounted to $53.90 million after a 13.33% gain in the last 24 hours. On-chain volume came in at $43.12 million which was up by an impressive 103.71% during the same period.
VET open interest | Source: Coinglass
This performance may not seem like much especially compared to its previous peaks. However, it does highlight a comeback for the VET token as far as demand is concerned. A confirmation that it is building up momentum.
VETs order book liquidity delta skewed in favor of accumulation
VETs order book demonstrated that the difference between buy orders and sell orders has mostly been positive in the last 2 months. A contrasting outcome especially compared to coins like BTC whose order book as significant red zones.
VET order book liquidity deltasource: Coinglass
While the order book confirms that there has been bullish activity on the way down, it does not reflect VeChain price action. Nonetheless, it does demonstrate significant interest in the cryptocurrency, and could signal a build-up of demand especially after its recent price floor.
Based on all the data, it is clear that VeChain price has a noteworthy fan base. However, demand has remained relatively weak and overshadowed by more popular coins.
However, its current wedge pattern breakout potential has been attracting more users and could pave the way for more upside if VET manages to attract enough liquidity. This also means there is a possibility that weak demand could render VeChain price action unable to achieve the velocity it needs for an explosive breakout.