The past few months have been rough on Vechain. In April, VeChain prices dropped by more than 40 per cent, which was one of the largest drops in a month for the cryptocurrency. The year-to-date data also shows that much of the 40 per cent drop happened during the month of April.
However, this month is showing signs of a trend reversal, with VeChain prices up by over eight per cent. In today’s trading session, the Vechain is up by more than five per cent, and it is also looking likely that the bullish trend will continue.
The current surge in price can be a result of recent developments that will see VeChain getting accepted in more than 2,000,000 stores worldwide. This is after partnering with Alchemy Pay. The partnership will allow users to use the VeChain native token VET to purchase real-world goods and services via the Alchemy Pay platform. As a result, this partnership is highly likely to result in high trading volume, which normally results in a bullish move.
The chart below shows the past few days have become increasingly bullish after months of aggressive downward price moves. The Williams Alligator and the RSI indicators are also showing signs of a price reversal. The RSI, for instance, is showing divergence to the upside despite the long-term trend still being bearish.
Trading at $0.049, Vechain is also coming from a price level that is near the support level of $0.411. Normally, when prices fail to hit the support level but get near it, there is a high chance of a price reversal.
Therefore, my VeChain price prediction expects the price of VET to continue with its current bullish trend. Although the current bullish move may be a correction, looking at the past price action shows Vechian corrections hitting more than 35 per cent before resuming long-term trends. This is why it is likely that the prices will trade above $0.06 regardless of whether the current upward move is a correction or a trend reversal.
This post was last modified on May 04, 2022, 14:20 BST 14:20