VeChain Trades Towards its Resistance; Can VET Cross $0.03?
VeChain uses a unique methodology called Proof of Authority to process transactions on its network. Rather than using computing power, its protocol decides which network participant generates a block based on its reputation. With its 101 Authority nodes controlling the transaction ecosystem, one can become its part by staking 25 million VET that is further used for governance.
VET token is used to generate VTHO used to pay for gas fees. VTHO is adjusted by burning 70% of the token since it has no supply limit. VeChain’s market cap is worth $1,701,814,985, with 84% of its tokens in circulation. VeChain’s blockchain ecosystem can transform the supply chain industry but would depend on the acceptance of digital technology and its availability in the market.
It is now being used to track Carbon Footprint and Air Quality in China based on the report of PwC. VeChain is addressed as the most eco-friendly blockchain technology in the current timeline, which will benefit its future growth.
VeChain hasn’t yet been able to overcome the 20 EMA, indicating a fundamental weakness in demand for this token in 2022. Since the March 2022 rally, VET has dumped significant of its market value from $0.08 to below $0.02. As RSI shows buying strength, the same isn’t reflected through the price action.
Looking at the moving averages and technical indicators, it is clear that the VET token hasn’t showcased any positive signal at current levels. Till the VeChain price breaches 20 and 50 EMA curves, buyers would mostly remain shy of the trading zone. Higher participation can be seen after a few days of positive movement of a double-digit breakout price action.
RSI indicator has spiked above the 40 mark on histogram while MACD is on its way to reaching the positive axis of the trading curve. The lack of bearish crossover and behavior of MACD as a parallel channel shows a consistent buying sentiment in the price action of the VET token.
$0.28 comes out as a resistance level buyers should remain aware of. The upside movement of its 20 and 50 EMA curves will mark the beginning of the positive price trend. Read our detailed VeChain predictions to know a price analysis and forecast of the coin.
The price pattern formed by the VET token resembles a Falling Wedge pattern. These trends often move towards the positive axis after breaking out of the zone. Consolidation and limited price movement are the worst enemies of uptrending possibilities in this trend.
The current trading resistance zone would be breached after crossing $0.027 levels. At the same time, the May 2022 breakdown would be the upcoming resistance zone to hinder the positive axis movement of the VET token. After the February and April peaks have created the resistance zone 3 and 4, all these levels can be breached after a positive consolidation.
This Falling wedge pattern is indicated by the end of July 2022; hence, we can witness an increase in buying sentiment and volume transactions in the coming days. Negative movement from this price band seems highly improbable, but one should expect the previous resistance zone to act as a support level in case of profit bookings in VeChain.