For the massive strides VeChain has registered in the last few years, discussions around VeChain price continue to spike. As expected, there are speculators keen on intraday trading and scalping.
From the one-way traffic and price uptick of the last week, it is highly likely that their longs pumped prices.
On the other hand, the true drivers of VET prices are the project’s fundamentals.
ToolChain: VeChain’s adoption driver
VeChain is keen on changing how the supply chain is done and allows enterprises to in simple steps, incorporate Distributed Ledger Technology (DLT) in their operations. Specifically, its Blockchain-as-a-Service (BaaS) platform, ToolChain, has been widely adopted.
Through ToolChain, not only can businesses integrate VeChain’s solutions thereby enhancing transparency and efficiency, but there is a clear improvement in the product’s quality.
With better traceability especially in food processing, end users can in seconds, download the product’s history since every step is registered and secured by VeChain’s Thor blockchain. These processing data are immutable and publicly available for analysis.
VeChain recognized by Germany’s federal office
As such, it wasn’t a surprise when a recent study by Germany’s Federal Office for Information Security (BSI) identified VeChain as one of the eight most promising blockchains whose solutions can solve some of the country’s concerns.
The study found that VeChain’s intelligent Supply chain management tools can find use in Germany’s agricultural and automotive sectors.
In these industries, quality above everything else matters. For their quality control and assurance, German automotive companies continue to churn out top-notch cars, some of which are considered the most luxurious.
Part of the report read:
“The VeChain blockchain will store information about certain products. Unlike OriginTrail, VeChain has a much higher market cap and is supported by a high number of large companies. With the study of VeChain and OriginTrail, the field of application “Supply Chain Management” is covered.”
VeChain price analysis
The VeChain price is one of the top performers in the last trading week. Up 33 percent, its currency—VET, has outperformed Bitcoin (BTC) and Ethereum (ETH) prices.
In the daily chart, VET has surged past key resistance levels. Still, the VET price continues to consolidate against the USD, ranging in a wide range of between $0.00250 and $0.0135. The former marks 2018 and 2019 support levels, while the latter is 2019 highs.
This week’s price surge saw VET price close above an important resistance level at $0.009, a buy trigger. Even though bulls pushed the VeChain price to $0.0135, there is some level of over-valuation.
The result has been the rejection of bulls’ attempts as VET prices fell back to the $0.009 level in the weekly chart. Sellers have the upper hand as evidenced by the long upper wick. However, VET prices may recover as long as bulls maintain VET above $0.009.
Judging from this development, risk-averse traders can continue buying the dips with targets at $0.0135 and later $0.020.
Any dip below $0.00450 invalidates this VeChain price bullish forecast.
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.