VeChain Undervalued! Is There Scope for Some More Corrections?
When cryptocurrency started with Bitcoin (BTC), people doubted its real-life utility and worldwide acceptance. Over time, new cryptocurrencies intended to solve a problem merged. One such coin in VeChain. This cryptocurrency has a lot of potential, and even some of the leading businesses have accepted its utility.
VeChain offers brands and companies a secure way of tracking their products in real-time, especially in a complex supply chain system. Since we are living in a connected world of the internet, so does VeChain. It combines the potential of the Internet of Things with the security of Blockchain and offers a digital way of controlling a product’s authenticity in a supply chain.
The full-scale application of this cryptocurrency aids in controlling fake products for companies. Still, it also ensures that customers can check and verify the authenticity of the products they are preaching in real-time. VeChain is relatively fast and efficient too. This Blockchain can support D-Apps, Smart contracts, and ICO.
VeChain offers a unique economic model using its two token system that uses VET and VTHO. This dual token ensures reduced cost from market speculations. VET can be considered as smart money, while VTHO is the energy that executes the transaction. 70% of each VTHO paid for a transaction is destroyed after completion of the transaction. The remaining is paid to the Authority Operator. This looks promising, but the valuation of this crypto currency depends on the utility and demand of the VET token.
VeChain Price Analysis
VET has been on a clear downtrend, but still, at the 6 cent valuation, it is trading on a premium of 5 cents compared to the valuation on 1st January 2021. VET has become a long term holding cryptocurrency because of lowering volatility and clear downtrend. MACD is also showing a fall in swing sizes.
The shrinking volumes and technical indications are showing a potential to consolidate before moving higher. There is strong support around 5 to 6 cents. Another aspect for bullish sentiment to return requires VET to cross its 200 DMA and trade above it.
VeChain or VET token has been facing severe flak in terms of valuations. Since the fall in the broader crypto market, VET has struggled to hold its ground and so far has fallen in double digits from it’s all time highs. On hourly charts, VET indicates some consolidation before starting the new leg of price momentum. Trading close to 6 cents, it is close to significant support levels.
VET can further correct to some extent as the entire market expects some good news on blockchain networks and upgrades. Expecting the VET token to start an uptrend needs to create some positive sentiment. On hourly charts breaking this consolidation zone can be positive news in the short term.
VET can reclaim up to 9 cents, but above that, it will need some strong buying sentiment and investor backing to push to higher valuations as per VeChain predictions. Given the lower valuations and increasing upgrades and business prospects, investing in VeChain should turn out to be a profitable bet.
Ensuring a diversified crypto portfolio will provide a better return potential over one-time investment in a single cryptocurrency.