VeChain scalability milestone, Bitcoin rally help push VET 60% up in just 5 days

VeChain, VeChain scalability milestone, Bitcoin rally help push VET 60% up in just 5 days
Image by Hancock from Pixabay

Key takeaways

  • VeChain confirms a bullish rally in line with Bitcoin this week.
  • Upon launch of the Vechain Improvement Protocol 193, the digital asset is gaining market attention.
  • The breakout has yet to reverse the bearish triangle in the long term.

YEREVAN (CoinChapter.com) — VET price continued soaring under the shadow of Bitcoin, the flagship cryptocurrency that rallied to almost $40,000 on Monday in the wake of Amazon’s adoption rumor.

At press time, VET was trading at $0.088, up approximately 13%, while following an uninterrupted green candle sequence of six days. In addition to Bitcoin, the announcement of VIP-193 launched on the VeChain testnet as part of the new PoA 2.0 protocol SURFACE boosted VET’s appeal among investors.

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

VeChain fundamentals at a glance

Perhaps as the launch of SURFACE approaches, the market strives to capture the buying momentum early on, predicting a more considerable jump upon release. In the meantime, Galaxy Score ranked VET among the top ten cryptocurrencies with leading social media and market activity.

VET among top ten by Galaxy Score

The ranking system uses machine learning to score digital currencies price data, social impact, and market sentiment. The higher the rank, the stronger the bullish sentiment across all data.

These kinds of signals drive the existing momentum to an upscale. It is, therefore, difficult to distinguish the increase in fundamental value from just an overhype. 

Nevertheless, the support of the blockchain community continues as Coinbase announces the sixteen currencies that are under review to be listed on the platform. VET has been on this list since October 2020, but it has been shortlisted just recently. 

The nature of the VET blockchain is also a catalyst for its price. As the pioneer of proof-of-authority protocol, VeChain is supposedly the crypto of choice for supply chain management companies and governments.

Fundamentals may not be the only drivers of the price as the week-long rally of VeChain cryptocurrency replicates the movement of Bitcoin. VET/USD has climbed around 60%, while BTC/USD has seen a 26% increase.

Related: Bitcoin blasts towards $40K on Amazon adoption row

Technicals

The price is already at a two-week high and might surpass the monthly high at this rate very soon.

After bouncing off support of nearly 5.5 cents, the price is now recovering towards a new Priceline at 10 cents. After crossing this line, a high resistance level may form around 14 cents, the Fibonacci pivot points suggest.

VET descending triangle breakout.
VET descending triangle breakout. Source: TradingView.com

The relative strength index (RSI) is at 59.27, quickly approaching the upper band. Since May, the indicator has not been at this level when the price was toggling around 20 cents.

The pattern has reversed from a bearish triangle. However, when the pattern is long-term, traders usually do not assume that the rally will persist. Instead, they predict that upward price movements will form a longer-term triangle with higher highs.

When this happens, investors are pumping the price up with a stop-sell strategy when the price hits the upper band of the triangle. Thus, it is up to the fundamentals to further the bullish sentiment for VeChain cryptocurrencies.

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