How VeChain’s Fundamentals Are Fueling Its Breakout Momentum

• VeChain’s consolidation near key EMAs signals potential breakout toward $0.12
• New staking yields and MiCAR license boost VeChain’s adoption and long-term value
• Strong fundamentals and bullish cycle position VeChain as a standout altcoin play

Altcoins are showing renewed signs of strength, and VeChain ($VET) is standing out as one of the key projects to watch. According to analyst Michaël van de Poppe, the current mix of technical positioning and fundamental progress suggests that VeChain may be preparing for a significant rally. 

With crypto markets turning bullish once again, many traders are now re-evaluating projects that combine development progress with favorable chart structures. VeChain fits well into that narrative.

Technical Signals Point Toward Breakout

Van de Poppe highlights that VeChain’s price action mirrors previous consolidation phases before major breakouts. The token has been trading between $0.02 and $0.03 after its sharp decline from $0.075 in December 2024. 

He notes that the daily chart shows repeated touches of the 200-day EMA and declining volatility, a pattern that often precedes strong upside moves. If momentum shifts, the next target aligns with the 1.618 Fibonacci level near $0.12.

The analyst also stresses that every upward rally is attracting new buyers at higher levels, creating a staircase-like pattern. This structure, paired with strengthening demand at key support, indicates that market sentiment could soon shift from cautious to optimistic.

Fundamentals Support the Case

Beyond charts, VeChain has been building aggressively. Recent updates include the launch of Stargate Staking, which offers early participants yields of up to 9% APY. This move not only incentivizes holding but also strengthens long-term network participation.

Related: VeChain (VET) at ‘Massively Strong Support’ as Analyst Eyes 300% Rally

Additionally, VeChain secured a MiCAR license, opening the door for more adoption from traditional businesses. A partnership with Dana White further expanded the project’s visibility beyond the crypto community. On the tokenomics front, VeChain has introduced supply adjustments that reduce inflation, creating a healthier environment for potential price appreciation.

Why This Cycle Could Be Different

Van de Poppe believes the current bull market conditions favor altcoins like VeChain. Unlike in past cycles, VeChain now combines market recovery with substantial fundamental progress. He also notes that staking rewards, when compounded with rising token prices, could amplify returns for long-term holders.

Related: Is VeChain Ready to Break Out? Analysts Eye $0.05 After Strong Support Holds

At press time, VeChain trades at $0.0236, with a market cap of $2.02 billion. While the token remains down nearly 10% on the week, the setup suggests that patient investors may benefit from the next leg upward.