Shaurya Malwa · 5 mins ago · 2 min read · Insights via Da Hongfei
Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
Binance.US Adds VeChain
VeChain (VET) is an enterprise-focused blockchain ecosystem that aims to enhance supply chain management. It connects blockchain technology with real-world applications through a comprehensive governance structure, a robust economic model, and advanced IoT integration. With its technology, manufacturers can assign products with unique identifiers to track them through a supply chain.
VeChain was open for trading on the Binance.US platform as of Nov. 7 at 9:00 PM EST. Therefore, users can already start depositing and trading this cryptocurrency in their accounts. VET has only been listed against the US dollar (USD), and its Bitcoin (BTC) pair could be listed later, depending on the demand that it generates.
The listing on Binance.US will provide market access to VeChain for millions of retail investors. This triggered a substantial increase in the price of this cryptocurrency trading as high as $0.006 after the news dropped. Now, it seems like VET could be bound for a pullback before the continuation of its bullish trend.
VET Technical Analysis
Over the last few weeks, VeChain has experienced an astronomical bullish impulse that has taken its price up over 110 percent. On Oct. 24, this cryptocurrency was trading around $0.00285 and now it recently reached a high of $0.006.
The latest push appears to be related to Binance.US’s decision to integrate VET into its retail platform. But, there are a series of developments by the VeChain Foundation that is triggering an increase in demand for this crypto. The Foundation not so long ago announced the first cross-continental logistics and trades solution based on a public blockchain for the food and beverage industry, which is creating a lot of buzz around the community.
As more developments are announced, VET is looking very bullish in the long-term from a technical perspective.
Based on the 1-week chart, the moving average convergence divergence (MACD), which is commonly used to follow the path of a trend and calculate its momentum, recently turned bullish. As the 12-week exponential moving average crossed over the 26-week exponential moving average, the probability for a further upswing increased.
If VeChain can close above the 38.2 percent Fibonacci retracement level, it could trigger an increase in the buying pressure behind this cryptocurrency. A rising volume could lead to an upward move that takes VET to test the 50 or 61.8 percent Fibonacci retracement level, sitting at $0.0067 and $0.0076, respectively.
However, after the 110 percent surge seen in the last three weeks, VeChain could soon find an exhaustion point. This would allow VET to retrace to maintain the uptrend healthy and let sideliners jump back in.
In fact, the TD sequential on the 1-day chart will be giving a sell signal in the next few hours. This bearish signal, in combination with the resistance given by the setup trendline, is strong evidence that a pullback is underway. Therefore, if VET closes below the 200-day moving average it could likely plummet to the 150 or the 100-day moving average that sit around $0.0050 and $0.0041, respectively.
The crypto community seems to be positive about the future of VeChain. The announcement by Binance.US to make this cryptocurrency available to millions of retail investors triggered a spike in demand. Additionally, the work put up by the VeChain Foundation to create Foodgates, a cross-continental logistics and trade platform, helped pushed VET even further.
Now, it seems like its time for investors to profit from the recent bullish impulse, which could cause a pullback. This could help maintain the uptrend healthy and preserve the optimistic outlook seen on VeChain’s 1-week chart.