- VeChain might be due for a temporary pullback.
- The strong uptrend remains and hasn’t been proven otherwise.
- Must remain cautious despite great temporary performance.
The crypto market has seen a gradual decline in the second half of the year after an incredibly well-performing first half. VeChain, however, might be getting overheated and is due for a temporary pullback. VeChain (VET) is a supply chain crypto which ensures guarantees of authentically produced goods.
It is an enterprise-focused Blockchain ecosystem that aims to enhance supply chain management by linking Blockchain technology with the real world through “a comprehensive governance structure, a robust economic model, and advanced IoT integration”.
VeChain allows manufacturers to assign products with unique identifiers on the platform, thereby enabling participants to track the movement and provenance of products in a supply chain.
Commenced in June 2015, VeChain describes itself as ‘a pioneer of real-world applications using public Blockchain technology, with international operations in Singapore, Luxembourg, Tokyo, Shanghai, Paris, Hong Kong, and San Francisco’.
VeChain currently has a circulating supply of 63 Billion coins and a max supply of 87 Billion coins. The most active exchange that is trading VeChain is Binance. The 2-day VET/USDT Chart shows a prominent Doji candle crowning the mountain built by VET.
The RSI also seems to be quite overbought. The 2-day chart, albeit not the longest chart, acts as a warning to be more cautious about overbought conditions. The strong uptrend remains and hasn’t been proven otherwise but these indicators act as a warning signal for what may come.
To further analyze what exactly caused this, it is necessary to look closely at exactly when the movement started going up for which it is essential to look at it from a 12-hour time frame. When that is done, almost no sign of technical weakness. Higher volume has been seen by each local top and most of it is by volume. A higher RSI peak has also been seen on this chart by each top, however, the latter has crossed bearishly for the first time in a while.
Based on this information, it is safe to say that VET may continue this rally at least in the medium term. The uptrend remains powerful and has seen no signs of flagging in the 12-hour timeframe.
If we look even more closely, at the 4-hour chart for the short term market, signs of cooling can finally be found. Here, it is clear that RSI is down-trending but it would start to look like hidden bull divergence if price can hold the 21 EMA.
The histogram seems to be arching up and in what could be a very shallow correction it may have even put it in a higher low. There has been no strong selling yet, even if it is appropriate.
All in all, the VET should be cautious despite its performance is
considerably great. Some consolidation might likely be seen, however, if VET continues holding this level and allows the average to catch up it is very possible for another leg up to be in the cards and thereby gaining more of an advantage.