Technical Analysis – Velas (VLX/USD) + TRADE PLAN
Date of Analysis: June 4, 2025
Timeframe: 4-hour (H4)
Current Price: $0.0023541
Chart Pattern: Falling Wedge (Bullish Reversal Potential)
Pattern Description: The price is consolidating within a falling wedge formation — historically a bullish reversal pattern.
Breakout Potential: If price breaks upward through the wedge resistance, strong momentum could follow.
Support Zone: $0.0020 – $0.0022 (Weekly low zone, strong historical support)
Resistance Zones:
Immediate: $0.00339 – $0.00397
Secondary: $0.00444 – $0.00513
Major: $0.00707 (high target zone)
Indicators Overview
VMC Cipher_B (Momentum Oscillator):
Momentum is deep in the red, approaching oversold territory.
Green dots signal potential bullish divergence forming (trend exhaustion).
RSI (14):
Current: 13.30 → Oversold, significant bounce potential.
Last low this deep preceded a strong rally — suggesting a possible bottom.
Arty Money Flow Index (MFI):
Shows low volume inflows → not ideal, but can turn quickly on bullish reversal.
Stochastic RSI:
Crossing upwards from deep oversold (<15).
Bullish crossover forming → early sign of reversal.
Two Scenarios – Trading Plan
Scenario A: Bullish Breakout (Primary Scenario)
Entry: On confirmed breakout of falling wedge → above $0.0026 with volume
Targets:
TP1: $0.00339
TP2: $0.00444
TP3: $0.00513
TP4 (Moon Target): $0.00707
Stop Loss: $0.00215 (below wedge bottom)
Risk/Reward: 1:3 to 1:5 depending on TP level
Confidence: 4/5 (RSI + Wedge support)
Scenario B: Bearish Continuation (Fails to Break Out)
Trigger: Break below $0.00215 with volume
Action:
Short-term panic sell possible down to $0.0015 – $0.0012
Watch for capitulation wick and rapid V-recovery
Re-entry Opportunity: If oversold bounces with large green engulfing or V-bottom reversal
🧠 Strategic Notes:
Velas is at a make-or-break point. Fundamentally, adoption and development updates from the team (esp. Alex & Co.) will heavily influence investor confidence.
DYOR Reminder: This is a highly speculative coin in an oversold state. Best used for swing trades or speculative long-term entries with tight risk control.
Date of Analysis: June 4, 2025
Timeframe: 4-hour (H4)
Current Price: $0.0023541
Chart Pattern: Falling Wedge (Bullish Reversal Potential)
Pattern Description: The price is consolidating within a falling wedge formation — historically a bullish reversal pattern.
Breakout Potential: If price breaks upward through the wedge resistance, strong momentum could follow.
Support Zone: $0.0020 – $0.0022 (Weekly low zone, strong historical support)
Resistance Zones:
Immediate: $0.00339 – $0.00397
Secondary: $0.00444 – $0.00513
Major: $0.00707 (high target zone)
Indicators Overview
VMC Cipher_B (Momentum Oscillator):
Momentum is deep in the red, approaching oversold territory.
Green dots signal potential bullish divergence forming (trend exhaustion).
RSI (14):
Current: 13.30 → Oversold, significant bounce potential.
Last low this deep preceded a strong rally — suggesting a possible bottom.
Arty Money Flow Index (MFI):
Shows low volume inflows → not ideal, but can turn quickly on bullish reversal.
Stochastic RSI:
Crossing upwards from deep oversold (<15).
Bullish crossover forming → early sign of reversal.
Two Scenarios – Trading Plan
Scenario A: Bullish Breakout (Primary Scenario)
Entry: On confirmed breakout of falling wedge → above $0.0026 with volume
Targets:
TP1: $0.00339
TP2: $0.00444
TP3: $0.00513
TP4 (Moon Target): $0.00707
Stop Loss: $0.00215 (below wedge bottom)
Risk/Reward: 1:3 to 1:5 depending on TP level
Confidence: 4/5 (RSI + Wedge support)
Scenario B: Bearish Continuation (Fails to Break Out)
Trigger: Break below $0.00215 with volume
Action:
Short-term panic sell possible down to $0.0015 – $0.0012
Watch for capitulation wick and rapid V-recovery
Re-entry Opportunity: If oversold bounces with large green engulfing or V-bottom reversal
🧠 Strategic Notes:
Velas is at a make-or-break point. Fundamentally, adoption and development updates from the team (esp. Alex & Co.) will heavily influence investor confidence.
DYOR Reminder: This is a highly speculative coin in an oversold state. Best used for swing trades or speculative long-term entries with tight risk control.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.