VeChain (VET) could advance even more in the ongoing bull market, but the risk remains very high

VeChain (VET) could advance even more in the ongoing bull market, but the risk remains very high
Written by:
Stanko Iliev
January 12, 2021
  • VeChain has advanced from $0.012 above $0.031 in less than several weeks
  • If the price jumps above $0.035, it would be a signal to trade VET, and we have the open way to $0.040
  • If Bitcoin enters the correction phase, that will have a negative influence on VeChain

The cryptocurrency market is advancing this Thursday; Bitcoin’s price went above $40000 resistance and reached a new all-time high. VeChain (VET) has increased from $0.012 above $0.031 in less than several weeks, and the current price stands around $0.029.

Fundamental analysis: VeChain improves supply chain and product lifecycle management

VeChain is a blockchain platform designed to enhance supply chain management and business processes. The logistics sector suffers from a large amount of data that are not communicated optimally.

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The entire supply chain relies on centralized data sources, which results in a lack of transparency and delayed data transmission. VeChain provides businesses the ability to track enormous data through a trust-free and distributed business ecosystem.

It is important to say that VeChain is not a fully decentralized platform and has the best features from both the DeFi (decentralized finance) and CeFi (centralized finance) sectors. The main characteristic of this platform includes high-speed value transfers, transparent information flow, and efficient collaboration.

VeChain utilizes various technologies to monitor gigantic networks and keep businesses up to date in the supply chain sector.

It also enables continuous and rapid innovation and derives its value from activities created by members. The result of this is a consensus that balances the views of all stakeholders in the ecosystem.

This platform was built with Internet-of-Things (IoT) integration in mind, and it has its cryptocurrency under the symbol VET. It triggers smart contracts and enables users to pay for transactions on Dapps that function on the VeChain blockchain.

VeChain (VET) could advance even more in the ongoing bull market, but if you decide to buy cryptocurrency this January, you should use a “stop-loss” order because the risk is very high.

Technical analysis: Bears are focused on breaking the support level at $0.025

When trading VeChain (VET), you should consider that the price could also weaken in the upcoming days. VeChain price is in correlation with Bitcoin, and if Bitcoin enters the correction phase, that will have a negative influence on VeChain (VET).

Data source: tradingview.com

The current resistance levels are $0.035 and $0.040; $0.025 and $0.020 represent the current support levels. If the price jumps above $0.035, it would be a signal to buy VeChain (VET), and we have the open way to $0.040.

On the other side, if the price falls below $0.025, it would be a firm “sell” signal, and the next target could be around the $0.020 support level.

Summary

VeChain tries to improve supply chain and product lifecycle management with various new functionalities that make it ideal for businesses. VeChain (VET) is one of the cryptocurrencies that could advance even more in the ongoing bull market, but there is still a level of uncertainty. If Bitcoin enters the correction phase, that will negatively influence VeChain, but as long as this cryptocurrency’s price remains above $0.025, there is no risk of the bear market.