Supply Chain on the Blockchain, VET Coin is bullish this week due to investors suspecting Cryptocurrency prices ‘may have bottomed’
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By bringing the global supply chains onto the Blockchain the goal is to increase the stability and cost efficiency of International Trade. One of these supply chain focussed chains: VeChain, price popped on Monday morning as cryptocurrency and stock prices jumped. The VET token rose to a high of $0.0238, which was the highest point since July 10th of this year. It has risen by about 20% from its lowest level this year, bringing its total market cap to over $1.7 billion.
Is bottoming in sight?
VeChain price has done relatively well in the past few days as investors bet that cryptocurrency prices may have bottomed. For example, Bitcoin has remained stubbornly above its YTD low of about $18,000. Similarly, after falling to below $800, Ethereum has jumped to about $1,400. Many coins like Ethereum Classic, Aave, and Uniswap have all risen by more than 50% from their lowest level this year.
Therefore, the VET price is rising simply because investors believe that crypto prices may have bottomed. They are also being encouraged by the performance of American equities. The Dow Jones, Nasdaq 100, and S&P 500 indices jumped by almost 2% on Friday even after the relatively disappointing bank earnings. In the past few months, there has been a close correlation between stocks and cryptocurrency prices.
Still, there are concerns about VeChain’s ecosystem since the number of developers embracing the network has been relatively small. More so, VeUSD, VeChain’s native stablecoin has received a relatively muted response. While it has maintained its peg, VEUSD has a market cap of just $5.5 million. In the past 24 hours, its trading volume has been less than $329k.
VeChain price prediction
The four-hour chart shows that the VET price has been in a slow recovery process in the past few days. It has managed to move from a low of $0.020 to the current $0.024. The pair also rose above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below the overbought level of 70.
Therefore, it seems like bulls are prevailing, which will likely push the coin to the important resistance point at $0.26, which is about 10% above the current level. A drop below the support at $0.23 will invalidate the bullish view.