VeChain Breaks Its Strong Support Levels: Downfall Certain

Power of blockchain revolutionizing supply chain management. The brainchild of Sunny Lu, who worked as an IT executive for Louis Vuitton in China, VeChain is meant to add a layer of transparency among the buyers concerning the change in the hands of their bought products. The idea sounded pretty futuristic, but in 2015 a CIO made it a reality.

Despite using modern cloud solutions and tracking systems, supply chains do not offer security and privacy. Working on the traceability to the original developer, the modifications done at each change of hands, and increasing the efficiency of a supply chain is not possible without the security offered by blockchain technology. 

VeChain is not just a technology, but a means to remove the existing corruption in the supply chain domain that disturbs the equilibrium of original products creating distrust for them after getting cheated with pirated items. Securing its original view makes VeChain one of the few original crypto networks in 2021. 

VeChain Price Analysis 

VeChain lost its charm with the fall of 7th September, destroying a total value of close to 50% in September. It fell from $0.1572 to a level of $0.0842 in just two weeks. The catastrophic double-digit profit booking has made it extremely difficult for VET to reclaim the 15 cent value anytime soon.

VeChain Price Analysis
VeChain Price Analysis Chart

At present, the price action has dropped to historical lows, which replicates the sentiment in the end phase of July 2021. The sudden drop in buying sentiment initiated on 6th September, till that time, RSI was trading above 70. The double-digit fall of 7th September happened with substantial volumes and subsequent price movements, enforcing a new level of negativity completely wiping off the gains VeChain made in buying sentiment and dropping valuations. 

At present, the 200 DMA curve of $0.1185 and 100 DMA curve of $0.1000 were both broken in the last few days. Moreover, the 100 DMA curve was broken with a double-digit profit-booking, which has created a massive negative sentiment across all investors at VeChain. So far, the loss of 21st September has been engulfed by the 8% intraday gains today. 

This pattern is an indication of buy-back, but it’s not a bullish buying. Instead, the exit of sellers from the market has prompted some gains. VeChain above the $0.100 or 100 DMA curve will be a perfect time to acquire as retracement rallies last for a longer duration.

VeChain Price Analysis Chart
VET Price Prediction Chart

VeChain has made a slight recovery with strong buying sentiment after marking a new low of $0.0845, jumping close to 11 percent within 24 hours. This retracement is not too positive as the volumes have fallen back to normal levels. RSI, on the other hand, has jumped from 25 to 50 in the last 24 hours. However, positivity will be ensured only after VeChain manages to trade above the $0.0976 level. So as per our VET price predictions, we can say that a sudden spike in volumes of VeChain from the usual of 4 to 5 million should be taken seriously.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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