The VeChain price has struggled in the past two days even as other altcoins like Ethereum, Cardano, and Internet Computer have surged. VET is trading at $0.1060, which is about 86% above the lowest level in July. As a result, its total value has jumped to more than $6.80 billion.
VeChain recovery in progress
VeChain is one of the most popular cryptocurrencies in the world. This popularity helped push it to an all-time high of $0.2780 in May. At its peak, the coin had a market capitalization of more than $12 billion. This trend reversed in May during the great crypto sell-off. The coin declined from its all-time high to a low of $0.05730 in July.
For starters, VeChain is a blockchain project that is focused on enterprise users. Companies like Walmart and Bayer are already using the technology. It is also being used by other institutions like hospitals and schools mostly from China. The product is also being used in other industries like retail, logistics, and automotive, and agriculture.
A few months ago, the developers announced that they would fund developers building enterprise Non-Fungible Tokens (NFT) projects. Still, it is too early to determine whether these projects will become successful.
The ongoing VeChain price rally is mostly because of the overall price action in the rest of the cryptocurrency industry. Indeed, other coins like Bitcoin and Ethereum have jumped recently. The price action confirms that all altcoins are closely correlated to Bitcoin.
VeChain price prediction
The 4H chart shows that the VET price has been in a bullish trend in the past few days. The coin has already moved above the key resistance level at $0.09380, which was the highest level on June 29. VeChain is also above the 25-day and 50-day moving averages. The MACD and Relative Strength Index (RSI) has also been in an upward trend.
However, a closer look shows that the coin is on track to form a double-top pattern at around $0.1095. The neckline of this pattern is at 0.0975. In price action, a double-top pattern is usually a bearish signal. Therefore, the price will likely pulldown unless bulls manage to move above the $0.1095 resistance level.