Here’s Why VET’s Corrective Phase Could Set Up for a Strong Bullish Wave Ahead

VeChain (VET) against the U.S. dollar is drawing attention due to its recent technical analysis and potential market movements. The Elliott Wave theory offers a comprehensive framework to analyze these trends, particularly highlighting a corrective phase for VET/USD. According to current insights by TradingLounge, an analytic firm, VeChain’s price action has entered a corrective structure, specifically a Double Corrective pattern, signaling that the market is poised for a significant shift.

Currently, VET/USD is navigating through Wave ((Y)) of a larger corrective phase. This phase appears to be winding down, as Wave II may be nearing completion. The price has likely finished its initial corrective phase in Wave 1 and is poised to enter Wave 2. This phase is crucial as it typically tests the 50-61.8% retracement level of the preceding Wave 1 before initiating a bullish Wave 3. Consequently, this presents a potential opportunity for traders to re-enter the market as the price is expected to rise.

The technical indicators reinforce this outlook. Currently, VeChain’s price sits below the 200-day moving average (MA200), suggesting a prevailing downtrend. Despite this, the Wave Oscillator indicates a bullish momentum, which hints at a forthcoming shift. This divergence signals that, while the price may be in a temporary downtrend, the longer-term outlook could favor a recovery.

Examining the four-hour chart of VET/USD reveals a similar pattern. The market is in a corrective phase, with Wave Y currently in play. This pattern aligns with the broader Elliott Wave theory, where Wave (2) of a larger impulse is expected to test the 50-61.8% retracement level of Wave (1). Given the ongoing correction, traders should be vigilant for signs of reversal and consider positioning themselves to capitalize on the anticipated rise in Wave (3).

VeChain is priced at $0.028015 with a trading volume of approximately $29 million, and a slight 3.40% increase over the past 24 hours. The RSI, at 47.61, indicates a balanced market without extreme overbought or oversold conditions. Additionally, the MACD is trading below the signal line, hinting at potential short-term downward momentum.