VeChain VET price just broke out from a bullish formation on the four-chart after a period of intense volatility that was highlighted by a 250% price rebound of the May 19 crash lows. The developing breakout is in the early stages, but VET is a remarkable turnaround after an 85% decline from the April high.

VeChain price momentum gains traction in a nervous market

Last week, the VET price was adversely affected by the combination of new Chinese regulations governing cryptocurrency and a deteriorating outlook for US interest rates. The result was a 51% weekly drop, the most significant weekly decline of Crypto since prices began in 2018. In fact, the VeChain VET price plummeted over 70% on May 19 before bouncing.

VeChain has stabilized and responded to the historic sell-off with a 50% gain this week. The price gain is nowhere near the largest weekly gains, but it does signify that FOMO is back in VET.

VeChain has staged a tremendous price recovery in just a few sessions, lifting the digital token above the 38.2% and 50% retracement support levels of the complete April-May decline. VET price is now above the 50 four-hour moving average and is testing the 61.8% retracement level at $0.140 after breaking out from an inverse head-and-shoulders support pattern earlier today.

If the VET price overcomes the resistance level at the 61.8% retracement, it should not meet any problems until the 200 four-hour moving average at a price of  $0.178 and then the 78.6% retracement level at $0.189. A high volume breakthrough of these support levels will leave VET poised to test the inverse head-and-shoulders measured move price target of $0.216, representing a 78% gain from the neckline at the time of breakout.

Additional resistance level that could interrupt a VET price advance is the May 7 high at $0.260 and then the all-time time at $0.282, printed on April 17. 

The fate of VeChain VET price will revert to a bearish narrative if it falls below the right shoulder low at a price of $0.104.

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