The VeChain price is bouncing back after it crashed by almost 50% from its highest level on record. VET is trading at $0.196, which is about 40% above its lowest level last week. This jump has brought its market cap to more than $12 billion. It is lying between Solana and the USD Coin as the 13th biggest cryptocurrency in the world.
What happened: A few weeks ago, VeChain was the talk of the town, as the currency’s price surged week after week. This happened until almost two weeks ago when the currency’s price dropped like a rock as the overall crypto industry crashed. In the past few days, however, momentum has returned and VeChain has started to hit new highs.
This performance is mostly because VeChain’s blockchain has become a leading player in the logistics industry. It has embraced by some of the biggest companies, including DNV, a large Norwegian classification society. Some of the biggest firms, including PriceWaterhouseCoopers, BitOcean, and LVMH have also inked partnerships with the project. This could be the reason why the VeChain price has been rising recently.
On the four-hour chart, we see that the VET price formed a double-top pattern about two weeks ago. This was followed by a 50% decline to $0.14 last week. The pair has managed to move above the 25-day and 15-day exponential moving averages while the Relative Strength Index (RSI) has moved from the oversold level of 30 to the current 50.
Therefore, in my view, the pair will likely continue rising as bulls attempt to bounce back to the highest point this month. However, this could change depending on the Fed interest rate decision on Wednesday. As I wrote in my Ethereum price prediction, this decision will have an impact on cryptocurrencies in general.
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