Verasity Price Rockets as Team Announces 50% Supply Burn

Key Takeaways:

• Verasity Retail announced the launch of its perpetual contract on Bybit.
• VRA price has confirmed a bullish pattern.
• The project recently announced a burn event to remove 10 billion VRA tokens from circulation.

NEW DELHI (CoinChapter.com) — Verasity, an AI-powered open ledger system, shared several bullish announcements recently. As a result, the platform’s native token VRA has jumped more than 83% since Sep. 27’s low of $0.0037.

Verasity announced the burning of 50% of its maximum supply on Oct. 2. The move was a community-driven decision. The burn event resulted in Verasity removing 10 billion VRA tokens from circulation, effectively capping the token’s circulating supply at 10 billion VRA.

Verasity Announces Launch Of Perpetual Contracts

Following the burn event, Verasity announced the launch of the VRA/USDT perpetual futures contract on the Bybit exchange.

Following the launch, funding rates for VRA contracts remained positive, according to Coinglass data. A positive funding rate means long position holders have been paying shorts to keep their bets open, indicating prevailing bullish sentiment.

In addition, the open interest for the contracts spiked, reaching nearly $4.4 million after the ByBit listing.

The Verasity team shared in a post that the VRA perpetual contracts trading volume crossed above 1 billion tokens within six hours of launch.

VRA Price Confirms Bullish Pattern

Meanwhile, VRA’s recent price rally resulted in the token confirming a bullish technical pattern called the ‘Falling Wedge.’

The technical pattern occurs when the price fluctuates within converging falling trendlines, usually leading to an upward price breakout. The target for the breakout is the maximum distance between the wedge’s upper and lower trendlines.

Hence, the theoretical price target for VRA price was near $0.0086, a spike of 115% from the breakout level of $0.004. The Verasity token price rallied over 71% since breaking out to reach $0.0069 on Oct. 4 before correcting.

The long lower wick on Oct. 4’s daily candle indicates bulls continue to buy the token. A continued rally could see the VRA price breaking above the resistance near $0.007 before targeting the resistance near $0.0077.

The RSI for VRA remained overbought, with a score of 89.44 on the daily charts. Overbought RSI levels often precede a bearish reversal or a consolidation phase for the asset’s price action. Therefore, traders consider the occurrence a bearish indicator and a sell signal.

Hence, if bulls fail to capitalize on the hype around the VRA token, bears could swoop in and push the Verasity token price to the 200-day SMA (green wave) support near $0.0058. Failure of the immediate support might force the VRA price to test the support near $0.005 before recovering.