VeChain (VET) is a blockchain platform that aims to improve supply chain management and logistics through the use of its proprietary technology. The platform’s native token, VET, is used to facilitate transactions on the network and can also be used to pay for the platform’s various services.
The price of VET has been on a downward trend since April 2021, when it reached a record high of $0.2793. However, a descending triangle pattern, which is a bullish pattern, had been limiting the downward movement. In June 2021, the price dropped to a low of $0.02 before beginning to rebound and rise again. After creating a slightly lower low in December 2021, the price started a new upward movement.
VET broke out of the descending triangle pattern in the second week of January 2023. Although the exact slope of the line is difficult to determine due to multiple extended upper wicks, it appears that the price has now broken out. As the triangle pattern has existed for 370 days, a significant upward movement would be expected if this is the case.
The possibility of an increase in price is supported by the weekly RSI, which broke out of its own descending resistance line. If the upward movement continues, the nearest resistance area would be $0.063, which is a long-term area that previously provided support. A break above this level would confirm the bullish reversal. From the current price, this area is more than 200% away.
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On the daily chart, the technical analysis is inconclusive. VET is facing resistance at the convergence of levels at $0.0215, created by a descending resistance line and the $0.0215 resistance area. This level caused a rejection on January 17 and started the current downward movement for VET. Additionally, this caused the daily RSI to drop below 70.
A breakout of the descending resistance line and the $0.0215 area would confirm the bullish signals from the weekly chart. In this case, an increase to $0.063 would be expected.
In conclusion, the most likely VeChain price prediction is an increase towards the long-term resistance area of $0.062. A breakout of the short-term descending resistance line would confirm this possibility. On the other hand, a rejection of the line could lead to a decrease towards $0.0186 – $0.0178. However, this is speculative and not trading advice.
It is worth noting that VeChain has been making progress on its partnerships and collaborations, which could have a positive impact on its price in the long run. Also, the use cases for VeChain in the supply chain and logistics industries are expanding, making it a platform to keep an eye on in the future.