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VeChain Price Prediction For 2021: VET at Critical Danger Support Levels

Published on Thu, July 15, 2021 by
Jose Maria Miguel Marquez • 5 min read

Last Update: December 3rd, 2021

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VeChain has been trading flat for the second half of 2021. As most of the major cryptocurrencies rallied to new highs and corrected thereafter, VeChain has been quite lethargic. It never touched previous highs and actually stayed within a tight range. It seems to have been out of the spotlight, as other altcoins rallied one after the other. Not much fundamental change could be attributed to this type of price action. On the technical side, red flags have been springing out here and there, the most significant of which indicates that it is currently sitting dangerously at a multi-year major uptrend support level. If it falls below this, it could spell deeper corrections for VeChain. 

VeChain – Forecast Summary

VET Forecast: H2 2021
Price: 0.20 – 0.30
Price drivers: Cryptocurrency Market Sentiment, Technicals
VET Forecast: 1 Year
Price: 0.20 – 0.50
Price drivers: Increased Partner Adoption, Cryptocurrency Market, Regulation
VET Forecast: 3 Years
Price: 0.50 – 1.00
Price drivers: Increased Partner Adoption, Increased Utility, Crypto Regulation

 

 

VeChain is an interesting blockchain-powered project that is looking to disrupt traditional supply chain models.

VeChain’s price has seen plenty of volatility over the course of 2021 and so far has been moving in line with the broader sector. Notably, price got as high as $0.28 in the bull run in mid-April, before selling down like much of the crypto space, to hit a low of 0.05200 in late May.

While price has seen some big moves, the project itself continues to garner plenty of attention and also attract new partners as it continues to evolve.

As it stands, price is currently making a series of lower highs and it’s fair to say we are in a bearish downtrend. Until that break to the upside comes, it might be worth sitting on the sidelines and waiting.

The project itself clearly offers value and a solution to a real-world problem, and the current price movements are more of a reflection of the market itself, rather than the value of the underlying project.

If price can break this downtrend, which would be fresh highs of around $0.08, then there is a chance for a rebound in the short term. If the $0.06 level drops, then we should expect further weakness and for those bullish on the project, it might be worth waiting to enter.

Current VET/USD Price: $

VET Live Chart

VET/USD

Recent Changes in the VET Price

Period Price Change ($) Change %
2 Weeks 0.12889 -0.01131 -9%
1 Month 0.13722 -0.01964 -14%
6 Months 0.12766 -0.01008 -8%
1 Year 0.01740 0.10018 576%

VeChain Price Prediction for the Next 5 Years

One of the most interesting things about the current state of the crypto market is the fact that there are many thousands of coins and tokens, yet only a few have real utility.

The problem that VeChain is seeking to solve, which is based around the supply chain, is a real-world problem and they also offer a genuine solution. So much so that they already have a number of major partners that use their technology including big names such as carmaker Renault and PricewaterhouseCoopers the multinational accounting and auditing firm.

Given that this partner base continues to grow, the longer-term outlook appears to be a strong one for VeChain. At this point in the lifecycle of many cryptocurrencies, there is a big focus on real-world utility. With the prospect of regulation increasing by the day, these companies will need to offer solutions to problems in a unique manner to survive going forward.

On the surface, the fact that VeChain already has partners that are using the technology would be a very good sign.

Given the sharp fall from the most recent highs, we should expect the five-year outlook to be very strong for VeChain. As mentioned, now that this downtrend has finally subsided and price stability is less volatile, the outlook for price to get to the $1 level in the next five years appears to be a realistic one.

How VeChain Works

A very simple way of looking at what VeChain is trying to accomplish is by looking at the journey of a product that you want to purchase.

Let’s say you want to make sure you are buying a product that is real and not fraudulent or counterfeit. VeChain works by applying a QR code to a product which can then be used to trace its history. The backend is managed through its decentralised blockchain, and with the given ID tag attached to the product, you can ensure its authenticity. As a consumer, you can then track the product’s journey through a phone app.

VeChain also supports decentralised apps, smart contracts and even ICO’s, and it also manages up to 10,000 transactions per second.

VeChain has been through a number of rebrandings and has been around since 2015 and launched in June 2016. It was created by Sunny Lu, an IT executive who was formerly CIO of Louis Vuitton China. VeChain was originally on the Ethereum network.

VeChain Ecosystem

The VeChain Ecosystem is based on two cryptocurrencies that keep the system decentralised.

VeChain (VET) is predominantly a store of value that can be used to make smart payments. When VET is kept in a dedicated wallet, it will automatically generate interest in the form of VeThor Token (VTHO).

When someone wants to add information to the blockchain, VeThor Token is spent. This is a bit like gas with Ethereum (ETH) transactions in which many people are likely to be familiar.

VET/USD Technical Analysis
VeChain Price Prediction For 2021: VeChain Price Prediction For 2021: VET at Critical Danger Support Levels

After an explosive start to 2021, we saw VET falter, along with the majority of the cryptocurrency market during the crash of May. Months later, we see VET has since stair-stepped upwards, from near the $0.0500 support to trading near the mid-term resistance of $0.16000 now. This strong recovery is a welcome sign that the bulls may be coming back. 

VET was able to break its downtrend bounce to $0.15722 last September. Since then, it has been ranging and consolidating just above the $0.08000 level. It is currently sitting slightly above its 200-day moving average, with somewhat weaker volatility than in the previous months. 

Looking at VET’s weekly chart above, we can see that it is just above the multi-year uptrend line. This major trend line began in early 2020 and it has held up well until today. This could be a great buy-on-support opportunity, however a break below this level could mean VET revisiting a previous breakout level of $0.28 to $0.30, which would be a massive drop of 75+% at current levels. 

VeChain Price Prediction For 2021: VET at Critical Danger Support Levels

I would recommend a cautious stance on VET at the moment as the daily timeframe chart shows a similar picture. VET is just above the major long-term 200-day moving average, which also coincides with the multi-year uptrend line seen in the weekly chart. Most technical analysts consider this long-term moving average as a strong gauge of financial health for any type of financial asset. If it trades below this level, most technicians would consider the sentiment to be strongly bearish.  

Moreover, it would seem that this correction is gaining a little bit of steam and momentum towards the downside, as VET’s average directional index (ADX) is now above 25.00, which is a key momentum level. 

As such, I reiterate that it would be best to wait and see how the price action behaves in the next few days. Will it rebound or will it falter? Sell if it breaks down, buy if it rebounds. But right now, it would be best to be patient and get more information as to where VET is likely to go in the near future. 

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About the author

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Jose Maria Miguel Marquez // Technical Market Analyst & Financial Writer
Jose Maria Miguel Marquez is a Certified Securities Specialist of the Philippine Stock Exchange and is an equities and cryptocurrency momentum trader with almost a decade of experience. He specializes in technical analysis to trade the Asian, American, and cryptocurrency markets.