VeChain price remained in a tight range on Monday morning as investors focused on the ongoing voting process. VET was trading at $0.022, where it has been in the past few days. The price is slightly above the important support at $0.021 and about 92% below its all-time high. So, is VeChain a good crypto to buy this week?
VeChain 2.0 vote
VeChain is going through one of its biggest changes as the developers focus on repositioning it for growth. A vote is currently ongoing on the VeVote platform that will change how the network operates. This vote will conclude on Thursday this week.
The vote is on migrating VeChain from a proof-of-authority (PoA) 1.0 to PoA 2.0, which will dramatically change how the network works. The PoA 2.0 network has been termed as Finality with One Bit (FOB) because it will merge the Nakamoto and BFT consensus.
As a result, it will play an important role in achieving block finality, maintaining the usability and robustness of the system, and by introducing minimal complexity to the existing POA-based system. Further, it will add minimal extra information for network communication.
On Monday morning, there were 331 votes and more are expected to come in the next few days. Analysts believe that the vote will pass in favor of the upgrade. For one, it will also introduce VeChain staking, which will make it possible for people to make money by holding VET. Exchanges like Binance have already agreed to facilitate this staking.
VeChain price prediction
The daily chart shows that the VET price has been in a consolidation phase in the past few days. It has remained unchanged at $0.0224, where it has been in the past few days. This price is slightly below the 50-day moving average while the Relative Strength Index (RSI) is slightly below the neutral point. The consolidation is in line with that of other popular cryptocurrencies like BTC and ETH.
Therefore, the outlook of VeChain is neutral at this point. A volume-supported move below the support at $0.021 will signal that bears have prevailed. As such, that will then drop to the next support at $0.018. A move above the resistance point at $0.024 will invalidate the bearish view.