The VeChain price has bounced back in the past few sessions as the altcoin season accelerates. VET has surged by 5% in the past 24 hours, bringing its market capitalization to more than $14.8 billion. It is now the 14th biggest digital currency in the world.
What happened: VeChain has been one of the most successful digital coins this year. VET has emerged from nowhere to become one of the most valuable currencies in the world. This happened as more companies like BMW and Salesforce have started exploring the network.
Further, the developers are also working to develop solutions that will help people develop enterprise-based non-fungible tokens (NFT).
In addition, the price gained during the weekend after the US published weak jobs numbers on Friday. If the country publishes weak inflation and retail sales numbers later this week, it could mean that the Fed will maintain its dovish rate position for a while. As such, this will lead to lower interest rates for longer, which will be bad for the US dollar and good for risky assets like cryptocurrencies like VeChain.
VeChain Price Forecast
On the four-hour chart, we see that the VET price has formed an ascending channel that is shown in black. In fact, the price is slightly below the upper side of the channel. The price is also slightly above the 25-day and 50-day exponential moving averages (EMA). The fast and slow lines of the MACD are slightly above the neutral line.
However, VET seems to have formed a head and shoulders pattern, which is usually a bearish sign. Therefore, there is a possibility that it will decline as bears target the lower side of the channel at $0.2077. However, a move above the upper side of the channel at $0.2550 will invalidate this prediction.