Date: Sun, February 23, 2025 | 10:42 AM GMT
In the cryptocurrency market this week, major altcoins are showing signs of recovery after facing a significant correction over the past 60 days. Bitcoin dominance has cooled down to 60.77% from a weekly high of 61.52%, creating room for altcoins to regain lost ground.
Among the impacted altcoins, VeChain (VET) and IOTA (IOTA) have corrected over 30% in the last two months. Both assets are now testing key support levels, and technical indicators suggest a possible reversal could be in play.
Source: Coinmarketcap
VeChain (VET)
The daily chart for VET shows that the price has been consolidating within a falling wedge pattern since its rejection at the $0.079 resistance on December 3, 2024. This rejection led to an extended correction, with prices moving toward the lower trendline of the wedge.
VeChain (VET) 1D Chart/Coinsprobe (Source: Tradingview)
Currently, VET is testing a critical support zone at $0.030-$0.035, along with the 200-day moving average (200MA), which has historically acted as a strong demand area. The falling wedge pattern suggests a potential bullish breakout if buyers step in at this level.
The MACD indicator is showing early signs of momentum shifting, which could signal a reversal. If VET manages to bounce from the support and break above the falling wedge resistance, the next key level to watch is the 50-day simple moving average (SMA). A breakout from this zone could trigger a move toward $0.044 and beyond. However, if the support fails to hold, further downside pressure could push prices lower.
IOTA (IOTA)
Similar to VET, IOTA is also trading within a falling wedge pattern, following a correction that started on December 4, 2024, after rejection at the $0.063 resistance level. Since then, IOTA has been in a prolonged downtrend, but it is now testing a crucial support zone at $0.019-$0.023.
IOTA (IOTA) 1D Chart/Coinsprobe (Source: Tradingview)
IOTA is currently hovering above its 200MA, a key technical support level that could act as a bottom for the price. The MACD indicator is showing early signs of bullish divergence, which suggests that selling pressure might be weakening.
If IOTA bounces from this level and breaks above the wedge resistance, a retest of the 50MA could lead to a push toward the next resistance levels at $0.029 and $0.042. On the other hand, failure to hold the support level could see IOTA extend losses further.
Final Thoughts
Both VET and IOTA are at crucial support levels, making the next few trading sessions critical. If these levels hold, a short-term recovery rally and breakout are possible. A breakout above the falling wedge resistance, supported by increasing volume and a bullish MACD crossover, could signal a reversal and trigger an upside move. However, if sellers maintain control, both assets risk further downside before finding a stronger support base.
Traders should closely monitor these key levels and wait for confirmation signals before making any moves in the market.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
