VeChain price bounces 15.5% off support upon announcing progress on PoA 2.0

Key takeaways

• VeChain announces a new milestone on the PoA 2.0 roadmap
• VET bounces to $0.066 after toggling down for a month
• Cryptocurrency technicals are still showing a bearish market sentiment

YEREVAN (CoinChapter.com) — VeChain Foundation has announced another milestone towards the deployment of SURFACE (PoA 2.0) on July 21. In the meantime, VET price saw an upshift after a persisting downtrend.

At the time of press, the price of VeChain cryptocurrencies stands at about $0.066, a 15.5% increase since before the announcement. The cost of VTHO, the energy token, bounced too by 13%.

The advantage of a protocol based on proof-of-authority (PoA) above proof-of-stake or proof-of-work is that it does not create competition among nodes on the mining power or crypto holdings. 

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Hence, holders consume less energy and do not hold too much power over the network if they have extensive collateral. In addition, the choice to have investors stake their reputation instead of their crypto funds makes the system more secure.

The analysis of VeChain by Nasdaq suggests that:

“Some core advantages of this PoA system are high scalability, privacy protection and “an effective and reasonable solution” for business applications like supply chains.”

What’s new on VeChain?

Then what will the new version of PoA offer to its users? The new protocol SURFACE (Secure, Use-case-adaptive, Relatively Fork-free Approach of Chain Extension) roadmap shows several components in development.

1. The VRF-based source of randomness;
2. A committee-based block producing process;
3. A passive block finality confirmation process.

#VeChain is pleased to update the community on the latest progress & roadmap towards PoA 2.0!

VIP193 is now on public testnet, unlocking the next steps towards PoA 2.0 implementation & a new era of #blockchain safety, scalability & absolute finality! $VEThttps://t.co/1Re8SKCLsu

— VeChain Foundation (@vechainofficial) July 21, 2021

The achievement announced on July 21 concerns the launch of VIP-193 (VeChain Improvement Proposal) on the testnet. This improvement accounts for the first two components, while the third will finalize in VIP-200 before the launch on the mainnet.

The added value of these algorithm improvements is that “very high-volume use cases can exist on-chain with the highest level of data security unfound in any other blockchain platforms.”

Therefore, the launch of SURFACE may be a monumental addition to the blockchain community and a price catalyst for VET and VTHO.

Technicals

The technical indicators of VET do not reflect this amount of optimism as of yet. The price movements resemble a descending triangle with a support level of around 5.5 cents. The pattern is usually an indication of an upcoming price slump.

Gradual price declines show that the cryptocurrency market experiences an extended bearish sell-off. Sellers hold their assets until the stabilization creates buyer momentum, and then they sell.

The 14-day RSI of the Vechain cryptocurrency has been hovering below the baseline. Moreover, the indicator has hit the lower band a few times to indicate overselling.

A one-cent increase is little to be excited about in an asset that has peaked at 27.82 cents just a few months ago. However, the rebound may have saved VET from a deeper downslide. 

Also read: VeChain vouches for a potential 23% loss on triangle breakout FUD.

The Fibonacci pivot points show that the price moved too close to its support at around $0.05. Breaking the support would sharply move the price line toward a new floor below one cent.

If the launch of SURFACE is genuinely a boost in the blockchain industry, as VeChain claims, these bearish technicals may reverse. New partnerships with governments, supply chain, and logistics industry firms that benefit from network centralization can put VET among the most sought-after altcoins.