Technical Analysis – Velas (VLX/USD) + TRADE PLAN

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.