Vechain price is down by 2 per cent in the early hours of today’s trading session, extending a bearish trend that resulted in a percentage price drop during yesterday’s trading session. The current drop, however, is not surprising and follows a long-term trend that saw VeChain value dropping by 20 per cent in November and extending the bearish trend into December, where it is already down by 3 per cent.
VeChain (VET) is a blockchain project that offers business solutions and recently underwent a major network upgrade called Proof of Authority 2.0 (POA 2.0). The upgrade was successfully implemented and is expected to improve the sustainability, performance, and global adoption of VeChain’s blockchain. It will reportedly facilitate numerous benefits, including a data quality guarantee and enhanced chain security, as well as increased scalability.
Despite the successful launch of POA 2.0, VeChain’s native token, VET, has seen minimal price movements. This may be due to the negative impact of the collapse of Terra Luna and FTX on VeChain’s mainnet activities and investor sentiment towards its price. Analysts view investing in VeChain as a risky, hit-or-miss scenario due to its volatility. The crypto major is too unstable to score as its prices continue to hit lower lows. Before the FTX incident, VeChain had already experienced a significant decline in mainnet activity following Terra Luna’s dissolution.
Overall, the successful launch of POA 2.0 brings VeChain closer to its goal of global mass adoption in supply chain management. However, the project’s recent challenges and volatility in the market make it a risky investment. It remains to be seen whether it can recover and regain the trust of investors.
Based on the fundamental analysis above, there is a high likelihood that we might continue to see big headwinds as the industry continues to struggle with the FTX-triggered crisis of the cryptocurrency industry.
The struggle is even evident when looked at using a technical analysis perspective, where we have seen price action of the past two months being aggressively bearish. Therefore, based on all the data that is currently available, it is highly unlikely that we will see VeChain recovering this year. In fact, my Vechain price prediction expects its to trade below the $0.017 support level in the coming sessions. However, should the price trade above the $0.02, then my current bearish analysis will be invalidated.
This post was last modified on %s = human-readable time difference 12:54