Is it safe to buy VeChain as its price jumps to August highs?

VeChain (VET/USD) price continued its comeback on Monday as demand for cryptocurrencies continued. The coin surged to a high of $0.032, the highest point since August 2022. It has soared by over 106% from its lowest level in 2022. This rebound is in line with the overall cryptocurrency rally as Bitcoin (BTC/USD) jumped to $25,000 for the first time in months.

VeChain price prediction (daily chart)

For this article, I will only focus on the VeChain’s price action and explain what to expect in the coming months. On the daily chart, the coin has managed to cross the key resistance point at $0.026, the highest point on February 8. It also jumped above the important level at $0.028 (November 8 high) and is now eying the crucial level at $0.0339. 

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The coin has moved above the 50-day and 100-day exponential moving averages (EMA). In most periods, this price action is usually a bullish sign. At the same time, the Relative Strength Index (RSI) has continued rising. 

It is also hovering near the 23.6% Fibonacci Retracement level while the bullish momentum is continuing. Therefore, at this stage, while VeChain has some on-chain challenges, I suspect that the bullish trend will continue in the near term.

If this view is accurate, the next key level to watch will be at $0.043, which is the 38.2% Fibonacci Retracement level. This price is about 43% above the present level. The stop-loss of this view will be at $0.025. 

VET chart by TradingView

VET price forecast (4H chart)

Turning to the shorter-term four-hour chart, we see that the VET price has been rising in th past few weeks. During the weekend, it managed to move above the upper side of the rising channel. Oscillators like the Relative Strength Index (RSI) and the MACD have also continued rising. The price remains above the Ichimoku cloud.

Therefore, by moving above the upper side of the channel, it seems like buyers are having momentum. As such, I suspect that the coin will continue soaring in the coming days even though a short-term pullback is possible. 

There are several risks to the bullish thesis. For example, the Fed will publish its minutes on Wednesday, which could show that officials are still hawkish. Such a view could push the US dollar much higher and pull VeChain lower. Also, there is the risk that the coin will retreat as buyers start taking profits.