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- VeChain Foundation is happy with the network’s progress despite challenging business conditions in October.
- Past and present price movement and technical indicators show that VET’s price rally could be temporary.
Like any blockchain firm’s desire, there have been promising developments on the VeChain network. However, the network had huge challenges in its operations this past month, according to VeChain’s official Twitter handle. However, the page also stated that the VeChain team is happy with the network’s progress.
For instance, the VeChain developers posted on the blockchain’s medium page that the network’s VeChain.energy was complete but felt “bumpy.” The VeChain.energy is a bridge with the primary aim of connecting Web2 and Web3 networks.
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
VeChain.energy makes it possible to integrate VeChain’s blockchain into any existing application, provided such an application has a 2-way communication functionality. A quick overview of VeChain’s official Twitter account indicates that the project has been progressing steadily.
The network usually posts its latest developments on its blog or medium page. Like other crypto projects with native tokens, VeChain also has its native token, VET.
Could the VET rally be temporal?
The crypto market meltdown has negatively affected the native tokens of many projects. However, VET has made considerable gains. The latest Coingecko data shows that VET posted 10 percent gains on the weekly chart.
The question is, can VET sustain its bullish trend? The recent positive developments on the VeChain network could contribute to VET’s price rally. However, it is noteworthy that the price of most of the top 30 crypto assets has also been rallying.
Few analysts predict that VET’s rally is temporal due to its past performances. They support their claim with the token’s flag and pole pattern formation on the technical charts. This pattern is VET’s third successive breakout of the bearish price pattern.
It is an indication of more selling pressure on the token. The market cap of any crypto project determines its growth. On-chain analytics platform, LunarCrush, revealed an 8 percent increase in VET’s market cap.
However, LunarCrush, added that the growth is wiped off by a 2 percent decline in VET’s TVL (Total Volume Locked). Also, the technical indicators disagree over VET’s bullishness or bearishness. The RSI and CMF are bullish about VET, while the stochastic RSI indicates bearishness.
However, an impending bearishness on the ema chart confirms the stochastic RSI’s bearishness about the token. Therefore, if VET’s next breakout is bearish, it will find its next support at the price level corresponding to the 100 Fibonacci retracement level.
Hence, interested VET traders must be cautious about placing long positions on the token. Instead, a better option is to take short positions and apply other risk management practices according to the prevailing market price. Meanwhile, VET is down 2.7 percent in the last 24 hours and trades at $0.0232, according to the latest data.
