VeChain has been making much headway this year, especially in the period that followed the notorious mid-March market collapse that sent the price of VET right to the all-time low at $0.0016. As it turns out, the seemingly catastrophic price drop became a starting line for a massive bull rally that has been going on for 110 days. The rally has already inflated the price of VeChain by some 400%, and we believe that right now, the coin is reaching the peak of the current upswing.
1-year VeChain price chart
There is no sole reason behind such impressive progress - this month, VeChain outperformed both Bitcoin and Ethereum by 71%, whereas its USD value has improved by 61%. According to the company’s financial reports and newsletter, the VeChain Foundation has concluded a lot of partnership deals over the past few months and made a significant effort towards establishing itself as a pioneer of blockchain technology adoption.
For instance, last week, the Foundation reported about providing a blockchain-enabled infection risk management solution for DNV GL, an accredited registrar in Norway. Previously, they have partnered with Shanghai Gas Ltd, and the logistics & supply platform called Producers Market. It shows that the team has been working tirelessly even in the times of global crisis, which leads us to believe that the ongoing rally is not a fluke, orchestrated by market manipulators.
To understand the bigger picture and the challenges that VeChain is currently facing price action-wise, let’s begin the VET price analysis by checking out the weekly time frame. Here we see that the coin made an amazing upside effort when it leapfrogged from the support at $0,043 straight above $0,008 in just three weekly candles. Moreover, the last candle of that formation is an inverted hammer, the presence of which clearly shows that the bulls have been getting even more confidence, followed by the 35% sprint to the upside which VET took this week.
1-week VET/USDT chart
If that daily candle closes above $$0.012, VeChain will display a clear intention to test a solid macro resistance level at $0.014 before the end of the month. It will also confirm that the bullish volume is again on the rise; hence we are to expect more buying pressure over the coming weeks.
Traders, however, must also take into consideration that two out of three major indicators, Stochastic and the 14-period RSI are already overbought, which might hamper the overall bullish momentum. MACD, on the other hand, has only recently entered the bullish zone on the back of the constantly growing green histogram, which leads us to believe that the buyers have enough internal force to keep the upward momentum going.
1-day VET/USDT chart
The VET’s standing on the daily time frame looks even more bullish as the price exploded from the Bollinger Bands squeeze even higher above the 50-period EMA, confirming that the bullish momentum is intact. The buying volume has been increasing for four days in a row, while MACD came up with a bullish crossover that could provide another 15% - 20% lift for VeChain in the next two weeks.
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