Founded in 2015 and launched in 2016, VeChain is the brainchild of Sunny Lu, the former Chief Information Officer of Louis Vuitton China. By combining the knowledge of blockchain technology with his experience in supply chain management, he introduced VeChain as a blockchain traceability solution in the luxury and fashion industries. The Vechain Blockchain called VeChain Thor relies on two tokens to operate, the VeChain Token or VeChain Thor Energy or V-Thor to pay for transactions and is generated by users who hold the VeChain token.
VeChain acts as a mediator of a supply chain for authenticating business transactions. As per the white paper published by VeChain, their primary goal is to make supply chain management accessible for business owners with the end goal of preventing fraud and loss of products.
It is a lot different from other blockchain technology as it works with supply chain management and product tracking rather than encryption of transitions as its primary function. It provides the physical product meant for transit unique identifiers such as RFID, QR, or NFC.
These identifiers store the information regarding the transit process and record information at each stage of the supply chain. The advantage of this asset is that information stored using blockchain technology cannot be tampered assuring the supply of original quality products from manufacturers to the buyers.
Why can VeChain be a revolutionary technology?
Counterfeits, fakes, and substandard quality are one of the biggest concerns in the global supply chain. From consumer durables, food items, expensive accessories, wherever there is an opportunity to skimp on quality someone along the supply chain usually jumps at it. In many online purchases, there is no way to guarantee whether the received product is fake or original.
VeChain intends to resolve these problems using blockchain using enterprise platforms such as Toolchain. They are offering distribution and retailing companies a way to track goods on the underlying VeChain blockchain. The product is tagged with a tracking tool the moment it exits the manufacturing unit. At each stage of the supply chain, it is scanned and important information is uploaded on the blockchain, such as location, temperature, transport conditions, etc.
Once it reaches the distributor they will be able to scan the details and ascertain its authenticity along with the information uploaded at each interval. The goal of VeChain is to allow the end consumer to scan the product to do the same. Thus VeChain can be expanded to every other industry such as electronics, arts, clothing, accessories, and other products of concern.
Take for instance the N95 masks in covid, when you make a purchase online, the product passes through a number of suppliers before ending with a seller. Once you have received the product there is no technical data or log to verify the quality of the product. This is mostly concerning food products, medicines, and other safety-related products.
VeChain Price Analysis
We have done an extensive technical analysis of VeChain cryptocurrency in terms of immediate support, resistance to ascertain the immediately achievable levels. This technical analysis will provide you with a detailed VeChain price prediction in both the short and long term.
Starting with the normal candle patterns, we have strong resistance at $0.14 and strong support at $0.07. The value of VeChain has remained in this region for the last week. Given the momentum and volumes in this counter, we expect a breakout rally, if it sustains over the $0.14 mark on the day chart without showing signs of weakness.
The Heiken Ashi chart shows a very strong short-term rally from $0.11 to $0.14, but the resistance and selling pressure at $0.14 is to be watched. The volume counter adds to the confidence in this coin breaking the next immediate resistance of $0.14.
For now, $0.106 has become the immediate support level for this coin and offers good stability for short-term holdings. We suggest waiting for the $0.14 breakout for fresh entry but VeChain holders should maintain their long positions with a 10% stop loss.
Moving Averages are the best indicators for VeChain technical analysis. It helps identify potential upwards and downward momentum on any crypto-counter. The revered 200 DMA is strong support and an equally strong resistance for any script trading above or below this line. Currently, the 200 DMA can be traced at $0.075, and given the bounce back on two instances on 17th and 21st March adds fuel to our prediction.
On the contrary, the 100 DMA is strong support for short-term trades between two to three months. The current price is above the 100 DMA which strengthens our resolve that VeChain is in the green zone. Although there can be some stiff resistance at the 30 DMA, which can force this crypto to undergo some consolidation before the next big move. Surpassing the 30 DMA should be taken as a signal for a bull run.
Combining both the moving average and resistance line, there is a strong indication of a bull run. Investors should not re-enter before it breaks the immediate resistance of $0.14.