Cryptocurrencies have multiple applications in the real world. The latter can be the source of substantial productivity gains in certain industries. The VeChain (VET) project is working in this direction, through a blockchain technology dedicated to the traceability and authenticity of products. With the main objective of combating the proliferation of counterfeits. And it is not surprising that luxury groups and the food industry are very interested in it.
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While the VeChain project had seen tailwinds in the first months of 2021, this dynamic has taken the lead in the wing with a cycle logic of cryptocurrencies. And the least we can say is that it is struggling to regain its previous levels. To the point of wondering where exactly are the prices of VET? And this is what we will see by analyzing the charts in weekly and daily units.
VeChain – A Clear Downtrend
The weekly chart leaves no doubt that VeChain’s trend is unmistakably bearish. Indeed, the downward line initiated since its last ATH in April 2021 seems firmly anchored. With high points always lower and lower. And two major downward waves which unfortunately show that no altseason seems to be on the agenda.
Nevertheless, the ability of VET prices to preserve its $0.03-0.04 support is currently a favorable technical signal that cryptocurrency investors can latch onto. But in contrast, the rally in technical indicators over the past few weeks is beginning to fade. And this is explained by the two successive weekly bearish candles, including this week’s.
Thus, it would not be excluded to see this cryptocurrency return to test this critical support. With, in the event of a break from below, an obvious risk of further accentuating the current downtrend. And, at the same time, a possible capitulation of buyers. But conversely, perhaps the worst is behind us. But in this case, the VET would be well advised to approach the descending line engaged since its last ATH.
VeChain – The $0.06 support as a reinforcement?
From the start of April, the VeChain saw its recovery initiated since mid-March stopped short at the resistance of $0.08. Then, following the failure of Bitcoin in its desire to permanently overcome $46,000, a sharp fall pushed it towards the support of $0.06. And although the last three daily bullish candles, including today’s, favor a rebound on this threshold, they are struggling to erase the losses recorded on April 11th.
However, these timid upward tendencies have the merit of curbing the poor dynamics of technical indicators in daily units. On the one hand, the MACD begins to return to the contact of the zero line. And on the other hand, the RSI resumes its forward march towards the neutral zone at 50.
In view of what is happening hot on the daily chart, breaking through the resistance at $0.08 may well drive VET prices close to its descending line. But in the opposite case, the critical support of $0.03-0.04 would become an option to consider, in the event of a breach of the $0.06 level.
VET – Bread on the board against Bitcoin
The balance of power between the VET and the BTC does not suffer from any discussion. Because since the peak in April 2021, he is in favor of the mother of cryptocurrencies. The fact of noting that its high points rise less and less, testifies to the dominance of Bitcoin against this altcoin. Especially when the general trend is gloomy, as it has been for several months.
As long as the VET/BTC pair does not manage to cross its descending line, investors have every interest in staying away from this cryptocurrency dedicated to the traceability and authenticity of products. And at the same time, an allocation in favor of Bitcoin would be more appropriate as part of a healthy and thoughtful diversification of a portfolio dedicated to risky assets.
When it comes to the VeChain chart, there are three key levels to watch in coordination with Bitcoin’s future moves. To start with the resistance of $0.08 which is a hindrance to the current rebound to the downline. Next, the $0.06 support could become a resistance in case of rupture. And finally, the $0.03-0.04 support is the one that matters the most, as it could determine the price fate of VET in 2022.
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