Category: VeChain

The crypto market continues on its downtrend, and VeChain (VET) follows after expiring some relief over the last weekend. The cryptocurrency recently breached a major level of support and seems poised to expand its downside price action.

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At the time of writing, VET’s price trades at $0.022 with a 3% and 32% loss over the last 24 hours and the past month respectively.

VET’s price trends to the downside on the 4-hour chart. Source: VETUSDT Tradingview

According to crypto analyst Justin Bennett, VeChain lost a major area of support when it broke below $0.024. As seen below, this area was the last line of resistance for a “neckline” or a trendline that saw VET’s price after an increase in previous selling pressure.

Not everything is lost for the bulls, the analyst believes, as long as VeChain is capable of holding above $0.021. This area is a “much more significant support for the market”.

In case of further downside action, VET’s price could drop into this support line before seeing some relief. If the price manages to get back above the neckline, it could support a bullish continuation.

However, traders should wait for confirmation if VET’s price can return to $0.024 and then to $0.026. Beyond that point, $0.028 seems like a very important area of resistance.

Bennett believes it seems more possible that VeChain will continue on its downtrend:

Resistance for VET is around $0.0237, which is the neckline it broke below yesterday. All in all, the market looks relatively weak. So even if we do see some additional relief, I think a move to at least $0.016 makes the most sense right now.

Traders should watch out for a daily close below current levels or $0.022. This could hint at potential losses targeting the levels mentioned by the analyst.

VET’s price breaks below the neckline of support on the 4-hour chart. Source: Justin Bennett
What Could Save VeChain In The Long Run?

As NewsBTC reported, VeChain is currently in the process of deploying a major consensus update. This could facilitate the corporate adoption of the blockchain VeChainThor and inject fresh capital into the ecosystem. However, this will positively impact VET’s price over the long run.

In the short term, Bennett claims the current macro conditions don’t support bullish momentum in the crypto market. The analyst recently pointed out a “Head and Shoulders” pattern formed on the crypto market total capitalization 4-hour chart.

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This pattern often precedes further losses by a certain asset. The total crypto market cap currently stands above $800 billion and could crash into the $700 billion if the pattern plays out. Any long positions, at current levels, seem at risk, as Bennett explained:

$TOTAL is a perfect example of how to use a failed head and shoulders to your advantage. That failure offered a short opportunity. I never thought to long this because of the established downtrend. I was always expecting it to fail.

VeChain follows the general sentiment in the market and has experienced some relief across low timeframes. The crypto market trended below the critical support zone during the weekend but saw it bounce during today’s trading session.

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Buyers have been able to push back bears in the short term but could still face further losses. At the time of writing, VET’s price trades at $0.02 with a 2% profit in the last 24 hours and an 11% loss in the last 7 days.

VET’s price trends to the downside on the 4-hour chart. Source: VETUSDT Tradingview

Despite the downside price action for larger cryptocurrencies, VeChain has managed to preserve its value over the past week. This cryptocurrency is on track to deploy a major update to its network which could be providing additional support.

The VeChain Foundation announced that the upgrade, dubbed Proof-of-Authority (PoA) 2.0, was successfully deployed on a testnet. The Foundation claims this milestone marks important progress towards a mainnet launch.

The update is set to remove the tradeoffs from the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus. The Foundation claims that this upgrade could use a new wave of “mass adoption” as the blockchain VeChainThor will provide its users with data finality and more scalability.

Designed to provide companies with a secure blockchain, use-case adaptive, and support corporate use cases. The VeChain community approved this consensus back in 2021, and once it’s deployed, will make this network one of the only blockchains running on a hybrid consensus.

The Foundation claims that PoA 2.0 will introduce a “finality gadget”, an add-on mechanism that will validate blocks twice. First with the Nakamoto consensus and then with the “finality gadget” to make transactions “impossible to revert”.

VeChain Foundation’s Chief Scientist Peter Zhou said the following on this update and its bullish case for the blockchain VeChainThor:

It’s a huge milestone for PoA2. With the finality gadget, VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.

VeChain Sitting On The Danger Zone

As VET’s price traded downside, analyst Justin Bennett claimed a revisit of the levels at $0.01 seemed “likely”. Bennett has been bearish on the crypto market and expects the total crypto market to continue its decline.

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This could spell more pain for VET’s price, at least in the short term, but provide long-term holders with a buying opportunity as the network prepares to implement PoA 2.0. Bennett said:

This bounce looks weak so far. Most likely another bull trap before the next round of selling.  I still think we see $TOTAL reach the $670-$730B area before a relief rally. That’s 17-25% below current levels.

I've removed these bids as we'll likely see $VET visit 0.016 at a minimum. https://t.co/URERjQf0rS

— Justin Bennett (@JustinBennettFX) June 18, 2022

The VeChain Foundation and the Ultimate Fighting Championship (UFC) announced a multi-year marketing collaboration. The partners claim the deal is a “first of its kind” aimed at “breaking marketing ground” for the blockchain-based organization and the mixed martial arts organization.

Related Reading | Why VeChain (VET) Could Be On The Verge Of A 40% Rally

In that sense, the VeChain Foundation will have an “unprecedented level of integration into key UFC assets”. This will include live events, broadcast features, in-arena promotion, and original content reserved for UFC distribution alone.

Data provided by the UFC claims there are over 900 million households in 175 countries with exposure to its mixed martial arts events. If only 1% of these numbers decide to enter the VeChain (VET) ecosystem, the network would see a huge spike in adoption levels.

Co-Founder and CEO of VeChain, Sunny Lu, said the following about the partnership:

It is a historical moment when VeChain, the Layer 1 public Blockchain with the most enterprise adoption, joins forces with the fastest growing sport to raise awareness that blockchain technology is critical in helping deliver major global objectives, such as sustainability. This is just the beginning of a multi-year relationship with UFC, and we really look forward to changing the world together.

Paul Asencio, UFC Senior Vice President of Global Partnerships acknowledged VeChain’s role in the crypto space and expressed his excitement as they become a major UFC partner. Asencio added:

VeChain’s expertise in using real-world blockchain applications to help the public and private sector achieve their carbon-neutral goals is an effort we are proud to support.  We’re looking forward to working with VeChain to leverage UFC’s worldwide popularity to promote a positive message that blockchain technology can be used to protect our environment for future generations.

How VeChain Will Benefit From Its UFC Deal

According to the release, VeChain will own UFC’s official fighter rankings titleship, this is designed to provide the blockchain with visibility and to attract more users to the network. The ranking will be titled “UFC Ranking Powered by VeChain”.

The collaboration will also grant VeChain branded presence inside the UFC Octagon across all of its events. The visibility will extend to Pay-Per-View events, UFC digital, and its social media platform, and its in-venue events.

UFC and the blockchain-based nonprofit organization will collaborate to create unique content and to develop corporate activities. UFC athletes will receive financial incentives to act as VeChain ambassadors and further strengthen the network’s visibility and potential adoption levels.

The partnership will debut next Saturday, June 11 at the Teixeira vs. Prochazka at the Singapore Indoor Stadium.

We look forward to working with @ufc in the years ahead & helping the world discover the power of public #blockchain for initiatives from #Carbon management, #Sustainability, #SDGs and much more.#VeChain will revolutionize the global economy. https://t.co/3O4BvO3rAs $VET

— VeChain Foundation (@vechainofficial) June 9, 2022

Related Reading | Why VeChain May Run Out Of Fuel After 90% Rally

At the time of writing, VET’s price seems to be slightly reacting to the news as it records a 3% profit on its 4-hour chart.

VET’s price moving sideways but with some recent gains on the 4-hour chart. Source: VETUSDT Tradingview

VeChain has been able to preserve its current levels as the crypto market loses steam. The sector has seen a recent bullish price action which has led the price of VET and other digital assets to a yearly high.

Related Reading | Why VeChain (VET) Could Be On The Verge Of A 40% Rally

At the time of writing, VeChain (VET) trades at $0.083 with a 13% and 80% profit in the last day and 30-days, respectively, according to data from CoinGecko.

VET with bullish momentum on the 4-hour chart. Source: VETUSDT Tradingview

Two weeks ago, NewsBTC reported a potential 40% rally for VeChain. Based on an analysis from Justin Bennett, the cryptocurrency was on the brick of breaking above a trend line which signaled potential appreciation.

This trend line marked the beginning of a multi-month downtrend, and its reversal could take VeChain into the $0.10 price point. Therefore, Bennett called this move “significant in terms of the overall context of the market”.

VeChain is yet to complete its full bullish trajectory into the $0.10 levels and beyond. However, it did manage to score a 90% rally, according to Bennett, destroying the market expectations of further downside:

VET is the same project everyone on CT said was dead for months. +97% in 16 days is quite the move for a “dead” coin. Let that be a lesson for anyone who jumped on the CT bandwagon. Peak pessimism amongst the masses usually means a buying opportunity isn’t far away.

The $0.080 point will be critical to determine if VeChain can sustain its current momentum. If these levels hold, VET’s price could appreciate further and return to its pre-crash levels from $0.10 to $0.14.

VET’s price breaking above a downside trendline. This suggests more appreciation. Source: Justin Bennett via Twitter

Data from Material Indicators (MI) suggest potential resistance at VET’s price current levels. There are over $2 million in asks orders above the $0.080 mark which could operate as resistance.

As seen below the most important level to break is $0.90 which holds the majority of asks orders. Above this price, there is little resistance.

VET’s price with resistance (yellow and red above price) at current levels. Source: Material Indicators
Will VeChain Continue To Appreciate?

Additional data provided by Material Indicators (MI) suggest retail investors (orange in the chart below) have been buying into VET’s price recent price action. In the meantime, investors with larger orders (in green and red in the chart, with selling orders between $1,000 to $10,000) began selling.

VeChain has sustained its momentum because investors with bids orders of around $100,000 (purple in the chart) have been continuously supporting its price. If this investor class continues to support VET, the price can stay at its current levels or trend to either side.

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Retail investors buy, but purple seems to dominate and dictate momentum.

Investors with $100k bid orders sustain current momentum as other investor classes (red and green) sell. Source: Material Indicators

VeChain has been moving sideways during the past week, with more downside action than larger cryptocurrencies. While Bitcoin, Ethereum, and others have seen some gains, the price of VET continues to trend downwards.

Related Reading | VeChain Records 7% Profits And It Could Outperform ETH, Here’s Why

As of press time, VeChain trades at $0.048 with an 8.9% and 34% loss during the past two weeks and 30-days, respectively. However, the cryptocurrency could be sitting at crucial levels and poised for major price appreciation.

VET trends to the downside on the daily chart. Source: VETUSDT Tradingview

Analyst Justin Bennett claims this upcoming VET’s price rally could push the cryptocurrency up 40% off its current levels.

On the weekly chart, the analyst identified a setup from back in 2020. At that time, VET’s price was preparing for what ended up as one of its biggest rallies in subsequent months, according to Bennet.

The analyst recommended his audience to “take everything with a grain of salt”. In that sense, he showed the price of VET moving sideways in an inverse “head and shoulders” pattern.

As seen below, when VeChain managed to break above that trend line, its price was able to resume bullish momentum into uncharted territory. At the time, VET’s price recorded over 1,000% gains through 2021.

Source: Justin Bennett via YouTube

Trending downside from that rally, as the chart shows, VET’s price has returned to below its 2018 trendline, to levels last seen before the previously mentioned rally. Bennett said:

In order for VET to move significantly higher this year, I’m talking $0.10 and higher, it is going to have to get above this trendline. So, this is what I mean by this trendline it’s going to be significant in terms of the overall context of the market.

VeChain, Bennet added, already attempt to get back above this trendline, but failed near the $0.070 price mark. Until VET’s price can return to those levels, the cryptocurrency is on a downtrend.

Can VeChain Break Above This Critical Level?

Bennet clarified that VET’s price could see some relief in the short term. The cryptocurrency could be poised for a 40% move back to its previous resistance levels at $0.070.

In order to achieve that bullish move, in lower timeframes, VeChain will need to break above the area around $0.050. As seen below, on the daily chart, VET’s price needs to see a daily close above this resistance price point. Bennett said:

The market is kinda getting into a point where it’s gonna have to make a decision (…). The set up I’m looking for for VET is going to be a daily close above the $0.050 area (…). Then we are looking at a potential move up to that $0.070 area (…). From $0.050 to $0.070 it may not sound like a lot, but that is a 40% rally. In my opinion, it’s worth the wait.

Source: Justin Bennett via YouTube

Data from Material Indicators shows VET’s price currently sits at $500,000 in bids orders. These orders could operate as support as VeChain moves into the critical resistance area around $0.050.

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If VET’s price breaks above those levels, the next resistance levels stand at $0.050 which records less than $200,000 in asks orders.

VeChain has been trading in the green during the last day as the crypto market shows signs of a potential recovery. The cryptocurrency could be benefiting from positive developments around its most recent partnerships.

Related Reading | VeChain (VET) Sends Bearish Signals? Analyst Points Key Levels

At the time of writing VET records a 7% profit in the last 24-hours outperforming larger cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH) which record a 3.3% and 4.9% profit, respectively, over the same period.

VET with minor profits on the 4-hour chart. Source: VETUSDT Tradingview

In an official post, the VeChain Foundation revealed its involvement at establishing the “Shanghai Association Standards For Blockchain Service” certification. Created to “expedite” the growth of blockchain based products and services, this certificate became effective in early February 2022.

The Foundation partnered with the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association to propose the standard. In that sense, VeChain “provided key technical input” based on the project experience, the post claimed.

The project Chief Scientist Dr. Peter Zhou in collaboration with other senior blockchain experts also provided guidance to facilitate the creation of this standard. The post added:

The most important objective of the standard is to provide a robust and proven assessment structure of present blockchain-enabled enterprise services.

The certification has outlined the requirements for entities attempting to provide blockchain as a service products and application including their technical, regulatory, and management obligations. In addition, it provides the necessary evaluation tools and “approaches” to certificate potential companies looking to build their own blockchain based application or use case.

The VeChain Foundation claim the standard is “widely applicable”, while adding the following:

It also contains universal guidance for technology providers looking to offer blockchain-based business services, while providing a valuable reference standard for enterprises looking to define premium, credible blockchain-based digital services.

Why VeChain (VET) Might Continue Recording Profits

This standard and its certification initiative has the ultimate objective of driving VeChain into the mainstream. As the Foundation said, the project has been involved in several initiatives with a similar goal and has attempted to showcase its “technical capabilities and ability to develop standardized, scalable designs”.

In addition to the above, VeChain has been implementing improvements to its mainnet to become the hub for corporate use case of blockchain technology. The Foundation efforts have been seemingly translated into the growth of its ecosystem.

As NewsBTC reported, the network saw the launch of a new decentralized exchange (DEX) called ZumoSwap and hinted at the launch of a new stablecoin.

Related Reading | VET Breaks Major Trend Line, Why VeChain Could See Massive Explosion

VeChain’s recent bullish price action could become the new normal for the coming months, according to a pseudonym analyst. As seen below, in the monthly chart for the VET/ETH trading pair, VeChain has entered a critical support area which has historically been follow by bullish price action, the analyst said:

We have been underperforming $ETH for 10 months. In 2019, 2020 & 2021, after green zone retest, each time it only took 3 months to break the old ATH. Assuming we have a retest this month or next, $VET ATH is in May/June 2022.

Source: Nordes via Twitter