VeChain (VET/USD) saw a spike in buying volumes on Thursday as it was trading over 4% higher. VeChain is an enterprise blockchain platform that aims to provide a full view of an organization by disintermediating information from data silos. VeChain also plans to become a leading platform for initial coin offerings (ICOs) and for conducting transactions between Internet of Things (IoT) connected devices.
The move on Thursday has increased investors' confidence in Vet as investors have been expecting a reversal as Vet was approaching a crucial support zone at $0.078, thus investors are now looking for opportunities to buy Vet as a reversal is expected soon.
After a sharp rally last week which caused the price of Vet to surge by over 17%, Vet has almost given up all the gains from last week. However, the rally on Thursday could be the start of the continuation of the rally, thus investors could soon see high returns from Vet. Vet has fallen by over 60% from the highs it hit after the rally in November, and investors could finally soon see a long-awaited reversal. Thus this has given a huge room for Vet to regain the losses from the huge fall in November.
A closer look at the charts-
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Vechain has fallen by over 60% from the top and has now formed a double bottom pattern which is a bullish reversal pattern thus a reversal could be seen soon.
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A bullish RSI divergence has also been formed, which is also pointing towards a strong bullish reversal soon.
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Investors can wait for Vet to break out from the resisting trendline which will show that the buyers are back in Vet.
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Investors can set a target at $0.1, followed by $0.12 and a stop-loss can be set at $0.07.
