Introduction
Hey friends hope you are well and welcome to the new update on Verasity. Previously I discussed the formation of another down channel on the daily timeframe chart. This article will provide an update on the recent movements of VRA and analyze its current position.
Recent Developments
In the last 24 hours, VRA has once again reached the resistance of the down channel. Additionally, it has broken out of a significant long-term resistance at $0.0035. On the weekly timeframe, this $0.0035 level has previously acted as a strong support, and now on the daily timeframe, it has broken out and is retesting the previous resistance as support.
Technical Analysis
Daily Timeframe Chart
VRA was previously moving inside a wedge pattern.
After breaking out of the wedge, the target was set at approximately $0.0088, which the price surpassed.
The price then encountered a long-term downtrend line resistance forming a new channel.
A double bottom was formed at the $0.00280 support level.
If the price gets rejected by the channel resistance, it may test the $0.0210 support.
Weekly Timeframe Chart
On the 7-day timeframe, the $0..0035 level has been a strong support historically.
A massive resistance of a big falling wedge pattern has already been broken.
This breakout led to a rally exceeding 634%.
The technical target for this breakout is between $0.08 to
Potential Scenarios
Bullish Scenario: If VRA breaks out of the current channel, the next target will be approximately $0.0158. Beyond this, it might attempt to break the long-term resistance at $0.017.
Bearish Scenario: In case of rejection from the channel resistance, the price may test the $0.00210 support and the support of the channel.
Conclusion
The recent breakout and retesting phase of VRA indicate potential bullish momentum, provided it sustains above the $0.0035 support and breaks out of the channel resistance. However, traders should remain cautious of potential rejections and support tests.
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