VeChain is now undergoing some promising developments, as would any blockchain-based endeavor. The official VeChain Twitter account stated that things became rough in October, but that the team is happy with the progress made so far on the VeChain network.
Vechain.energy aims to connect the web2 and web3 communities. Developers recently stated on Medium that the bridge “felt complete, bumpy but complete” in the month of October.
While the most up-to-date information can be found in the blog post, a snapshot connected to their Twitter tweet demonstrates the project’s steady development. This is hopeful news for the project.
However, there is always a unique cryptocurrency that is released alongside a new crypto project. The value of VET, VeChain’s native currency, has increased dramatically after the crypto market meltdown this year. There was a 10% weekly gain, based on figures by CoinGecko, Wednesday.
The only remaining question is whether or not VET will maintain its upward trajectory.
October was an amazing month! Technically the most important brick was laid with our #WebHooks that allows bi-directional #Blockchain communication with every backend. But there was more …
Here’s our reflection on October:https://t.co/RfiW5UNncW#VeChain #VeFam pic.twitter.com/GevQyKC58v
— vechain.energy (@VeChainEnergy) October 31, 2022
VET Rally Could Just Be Temporary
While encouraging developments on VeChain contributed to its price increase, it should be noted that the majority of the top 30 cryptocurrencies are also seeing price increases.
However, VET’s rally may be temporary. Based on previous and present price fluctuations, flag and pole patterns have formed. This is the third consecutive break of a bearish pattern, which will exert downward pressure on the token.
Market capitalization is where growth can be observed. According to LunarCrush, VET’s market capitalization increased by over 8%. This expansion is counterbalanced, however, by a decline in TVL of approximately 2%.
Additionally, the coin has contradictory RSI, Stoch RSI, and CMF values, with bullish RSI and CMF values and bearish Stoch RSI values.
What Are The Bearish Trends For VET?
All of these bearish chart changes are backed by the approaching bearish convergence with the EMA Ribbon. This can be a significant issue for VET, as it can result in a bearish break on the current flag and pole structure.
A bearish breach of the current trading pattern might send the price of VET down toward the 100 Fibonacci retracement levels.
Therefore, potential VET investors should be wary about taking long positions and might consider utilizing the negative Stoch RSI value and going short at the current market price.
VET market cap at $1.70 billion on the daily chart | Featured image from Zipmex, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal understanding of the crypto market and should not be construed as investment advice.