Here’s Why VeChain (VET) Price Rally Has More Room to Grow

2 months ago 23

VET, the native token of smart contract blockchain VeChain emerged as an outperforming asset in the third week of February. The VeChain price rising for six consecutive days has recorded 61% growth as the price jumped from $0.0295 to $0.0477. This recovery can be attributed to the recent upgrade on the Vechain ecosystem Account Abstraction (AA) went live and price escapes from nearly 2 years of accumulation.

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VeChain Price Breaks our of 21-month Accumulation

Before the recent price surge, the VeChain price was struggling as encapsulated in a 21-month consolidation struggling to surpass the $0.04 resistance. However, the sideways trend marked by the green rectangle in the above chart indicates the formation of a rounding bottom pattern.

This chart setup is often developed at the bottom of a major bear cycle and allows the asset to go through a necessary accumulation phase to trigger a new rally. Under the influence of this pattern and broader market rally, the VET entered a new correction in mid-september 2024.

The positive turn initiated at the $0.0146 floor surged the coin price by 220% within 6 months. However, the current recovery picked up momentum as VeChain launched Account Abstraction (AA), enhancing its blockchain ecosystem with seamless interoperability and programmable smart contract wallets, according to an official tweet.

This advancement aims to improve user experience and security, making digital asset management more intuitive and customizable. AA’s introduction marks a significant step in VeChain’s evolution, promising to attract more users and developers by simplifying blockchain interactions and bolstering security.

Account Abstraction (AA) is now live, opening up a whole new world for #VeChain.

Not only does AA make interoperability seamless, but it also unlocks programmable smart contract wallets for a better user experience and improved security.

Here’s what it means for $VET pic.twitter.com/SecJ6OwnGu

— vechain (@vechainofficial) February 14, 2024

Is VET Price Heading to $0.065?

On February 15th, the Vechain price jumped 28% and provided a massive breakout multiple-month consolidation below $0.04. This escape signals an early sign of trend reversal and provides buyers with suitable support to develop a rounding bottom pattern. Under the influence of this pattern, the VET price could rise to $0.089 neckline resistance.

However, the recovery won’t be unidirectional, as VET prices showcase a pattern of 50-61.8% retracement before continuing the prevailing trend.

Also Read: Bitcoin Tops $52,000 – But Why Are These 5 Altcoins To Buy Soaring Even Higher?

Technical Indicator:

Exponential Moving Average: The coin price trading above daily EMAs(20, 50, 100, and 200) reflects a positive shift in the market.
Average Directional Index: The rising ADX value at 30% reflects the buyers may soon need a breath(pullback) to recuperate their strength.

The post Here’s Why VeChain (VET) Price Rally Has More Room to Grow appeared first on CoinGape.

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