- VeChain price prepares for an upswing as it nears the end of an ascending triangle.
- VET’s on-chain metric notices a stark increase since mid-January, hinting at favorable outlook.
- A decisive close above the $0.035 resistance level could propel this cryptocurrency to $0.045.
VeChain price has endured a week-long consolidation period without providing any clear signs of where it is headed next. But as VET trading will be open to a wider audience, a spike in buying pressure could see it rise by more than 40%.
KuCoin lists VET futures
One of the largest cryptocurrency exchanges in Singapore, KuCoin, announced the launch of VeChain and Terra (LUNA) perpetual contracts on February 8 at 08:00 UTC. Users will be able to trade these altcoin with up to 50X leverage.
Futures or perpetual contracts have been a go-to for many cryptocurrency traders. The reason behind it is that these types of financial products allow users to maximize their profits. By using leverage, anyone can buy more contracts than they would otherwise be able to afford.
Exchange listings usually cause the listed asset’s market value to increase. This market behavior is commonly known as the “exchange effect” and can be seen in popular exchanges like Coinbase, Binance, among others.
While KuCoin’s announcement was able to push VeChain price by nearly 10%, further gains are expected.
VeChain price primed for another rally
VeChain price seems to be consolidating within an ascending triangle waiting for a spike in buying pressure following a 150% bull run. Although the recent “exchange effect” helped VET rise considerably, it still needs to close above $0.035 to confirm a bullish breakout.
By slicing through this resistance barrier, VeChain will likely rise by more than 40% to hit a target of $0.045, based on the ascending triangle pattern.
VET/USDT 4-hour chart
Supporting the bullish outlook is VET’s development activity, which has seen a 3,900% increase since mid-January. But over the past five days, this on-chain metric rose from 1.64 to 4, representing a 145% increase.
Market participants usually perceive spikes in development activity as a sign of new product rollout announcements or upcoming network updates, which can help VeChain price rise further.
VET Developer Activity chart
However, if VeChain price slices below the triangle’s hypotenuse at $0.025, it will invalidate the bullish outlook. In this case, VET can be expected to plummet towards $0.015.