VeChain (VET) Needs a Significant Breakout to Breach the $0.0288 Mark!
The core application of the VeChain token and its parent blockchain, VeChain Thor, has been towards the supply chain industry. This industry hasn’t witnessed any substantial transformation over the years, and VeChain has partnered with leading product development companies to ease their supply chain woes. The support was first lent by reputed luxury brands, which were facing constant threats from copied products. Enabling blockchain would make it easier for buyers to validate the product’s originality and ensure themselves.
VET has a market capitalization of $1,979,809,182, with 84% of its total supply already in circulation, counting 72.51 billion VET tokens. The huge decline seen on VeChain is caused by over-excitement in the crypto world despite its service not being operational over a wider audience, indicating a possible shutdown by government sanctions and regulations.
VET wasn’t a currency or payment coin but a utility token that could grow in the coming years. VET has substantial growth potential in the coming years as it is a utility-focused token. Read VET price prediction to find out how high the token’s price can reach in the coming years!
VeChain is nearing a strong resistance of 100 EMA with a price action-based resistance near $0.0288. Further upside resistance would become stronger as VET takes more time to overcome the immediate resistance and even turn easier if immediate resistances are beached. An immediate support level is available at $0.0207, which seems to be getting stronger.
Since June 14, 2022, the uptrend has begun with a slow and consistent momentum. Despite the volatility in the last few weeks, the transaction volume has maintained consistency. RSI, during this phase, showcases an uptrend in buying sentiment while MACD maintains its bullish projections.
On investigation, the closing pattern of individual candlesticks has formed upper wicks indicating resistance and strength of sellers. With a third consecutive defeat from its immediate resistance of $0.0288, the possibility of VET moving upwards becomes more and more challenging. Downtrend after failing from this immediate resistance could result in a further decline to $0.0256.
VET witnessed a major uptrend during the second half of March 2022. The resultant price action was tremendous profit booking as the entire crypto space was going through the infamous crypto winter. As the dust settled, prices reached the levels last seen in January 2021. Technical indicators are projecting an uptrend, but with much lesser intensity than the negative trend witnessed in the last seven months.
August 2022 could bring a positive change if the weekly candle manages to close in the green color. The weekly candles so far have been ending with an upside wick, indicating a profit booking or resistance from the seller halting its upside movement. Surpassing $0.0341 would indicate a fundamental strength.
