VeChain’s (VET) price has been rising solidly above the 50-period simple moving average, which has been guiding the bulls as dynamic support at the H4 chart. First, the cryptocurrency retraced around $0.18, and now it looks like it’s trying to gather momentum to resume the rally to test new highs.
As we can spot on the H4 chart, VET is trying to develop a higher low around the 50 SMA to keep alive the bullish construction across the board, although it’s at risk to give up and plummet towards the next critical hurdle at the 200-period simple moving average around $0.13.
Targeting $3 For 2022?
A curious but interesting forecast hit the wires recently through Justin Bennet, a cryptocurrency analyst, who said that VeChain’s coin has the potential to skyrocket around 2,700% in the short term to follow Bitcoin’s (BTC) bull-run to reach the $3 threshold.
He mentioned that if the bullish cycle in the largest’s crypto by market cap runs until March 2022, VET is poised to be between the $2 and $3 range.
— Justin Bennett (@JustinBennettFX) October 13, 2021
The forecast sounds like an idyllic one but could be feasible given the last months’ performance in the altcoin. In fact, despite the meltdown seen across the vast majority of cryptos over the last summer, VET managed to stay firmly around critical levels where demand has been proven to be higher from an on-chain perspective.
Critical Confluence With The 200 SMA
Now, according to the H4 timeframe, the price could retrace further towards the 61.8% Fibonacci retracement level at $0.13, where it makes a confluence with the 200-period simple moving average.
Such an area could act as a pivotal zone where buyers could take the reins once again and push VET higher to make new peaks.
However, in a pessimistic scenario, doors will open for further weakness if that Fibo retracement zone gives up, and it could allow a leg lower that could push lower the altcoin and eventually can put the price at around the $0.10 level in a first instance, followed by the $0.07 zone.
Meanwhile, the RSI indicator stays in the neutral territory, waiting for a decisive move.
This article was originally posted on FX Empire