The VeChain price is struggling after it experienced a major bullish breakout on Friday. The VET is trading at $0.22, which is 12% below the highest point on Friday. The currency has a market cap of more than $13 billion, making it the 14th biggest digital currency in the world, according to CoinMarketCap.
VET is sandwiched between USD Coin and Ethereum Classic
VeChain fundamental analysis
VeChain is a blockchain project that helps companies create decentralized applications. The network was started in 2015 by Sammy Lu, who was the previous Chief Information Officer (CIO) for Louis Vuitton in China. The network uses VeChainThor. VET is the native currency for the ecosystem.
In the past few months, VeChain has been in a strong upward trend as more companies adapt its technology. Some of the most prominent companies building applications using the network are BMW, Walmart, and Louis Vuitton. Many others like Salesforce and PriceWaterHouseCoopers (PWC) have started to study the network.
Recently, the VeChain price surged after the company made a pitch of enterprise non-fungible tokens (NFT). The idea is that companies will use their network to offer important items for sale. Still, it is relatively early to tell whether more firms will use it in this kind of development. Furthermore, many developers of NFTs have chosen other platforms like Ethereum, Cardano, and Polkadot to build these projects.
VeChain price prediction
On the four-hour chart, we see that the VET price has been forming a rectangle pattern whose support and resistance levels are at $0.1815 and $0.2245. On Friday, the currency managed to move above the resistance. The gains failed to hold and the currency returned back to the rectangle pattern during the weekend. The pair seems to be forming a head and shoulders pattern. It has already formed a left shoulder and head part. This pattern is usually a bearish sign.
Therefore, there is a possibility that it will bounce back to complete the right shoulder and then drop to the support of $01815, which is about 15% below the current level. However, a move above the head part at $0.2510 will invalidate this trend.