VITE has soared over 15% today and 70% in 48 hours. After weeks of stagnation, this rally has drawn attention to the token.
One of the primary reasons for the current price surge is the belief that VITE has reached a bottom after a lengthy phase of sideways trading. Such typically brings in many hopeful buyers who wish to get some profit from the anticipated rally.
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This consolidation period, which began in October, often indicates an accumulation phase. It is a period where traders, including large investors or “whales,” gather liquidity in anticipation of a price reversal.
The impact of a perceived “bottom” can attract retail traders seeking low-risk entry points. This influx of new buying pressure may intensify the price movement, creating a self-reinforcing cycle.
VITE’s Rally May Be Short-Term
The current price action is sending mixed signals. Notably, VITE is trading below a descending trendline that has served as a significant barrier since March.
Furthermore, the 200-day Simple Moving Average (SMA) has acted as a resistance level over the past two days. The price has tested this barrier but has not managed to close above it. This suggests that bullish momentum may be limited unless this level is decisively breached.
The 50-day SMA is currently providing support, indicating some backing from technical buyers. Thus this shows we may see some more bullish moves but the more general trend is still bearish.
