The VeChain price has tilted relatively higher today as the rest of the cryptocurrency universe jump higher. VET has risen to $0.1370, which is more than 105% above the lowest level on May 21. It has a market capitalization of more than $8.8 billion and is the 20th biggest digital currency in the world.
VeChain bounces back
VeChain is a leading blockchain project that helps enterprises improve their supply chain. The network is now used by hundreds of Chinese companies like Walmart, BYD, and BMW. It is built for companies in the retail, automotive, logistics, energy, and agricultural sectors.
The VeChain network is powered by VeChainThor, which is a platform that helps people build decentralized apps. VET is the native currency of the network while VTHO is the gas in the ecosystem.
Like most altcoins, the VeChain rallied early this year as more investors bought the coin. Between January and April, the coin was up by more than 1,700%. Between January 2020 and April this year, the coin was up by more than 5,700%.
This growth was mostly because of strong user adoption, low-interest rates, and the overall fear of missing out (FOMO) among retail traders.
Recently, though, the VeChain price has dropped substantially as part of the crypto sell-off. Between April 16 and May 23, the coin was down by more than 73%. Since then, the coin has erased some of the losses and is up by more than 100%. So, what next for the VeChan price?
VeChain price technical analysis
In my previous VeChain price prediction, I said that the currency seemed ripe for a 32% spike.
Turning to the four-hour chart, we see that the VET price is approaching a key level of resistance. The coin is trading at $0.1370, which is slightly below the important resistance at $0.1400. This is a notable resistance since it was the highest level since May 26. It is also slightly below the highest point since March 20.
Further, it is an important resistance since it is along the 50% Fibonacci retracement level. Also, the 15-day and 25-day weighted moving averages (WMA) are close to a bullish breakout.
Therefore, in my view, I suspect that the price will bounce back above this resistance. If this happens, the next key level to watch is at the 38.2% retracement level at $0.1754, which is about 26% above the current level. This prediction is in line with what I wrote yesterday here.
However, if the price struggles to move above this resistance, it will signal that there are not enough buyers above this level.