VET rallies 13% amid proof-of-authority upgrade FOMO, crypto market boom

Key Takeaways:

• Supply chain management network VeChain created a pole to vote on a possible upgrade to a proof-of-authority 2.0 consensus mechanism.
• The network’s native token VET jumped 13% in response.

YEREVAN (CoinChapter.com) – Digital asset VET jumped 13% in the past two days after its native network VeChain, a blockchain-powered supply chain platform, announced a vote to implement a blockchain upgrade. The upgrade involves a transition to proof-of Authority (PoA) 2.0 consensus mechanism, dubbed ‘SURFACE,’ which stands for ‘Secure, Use-case-adaptive, Relatively Fork-free Approach of Chain Extension.’

VeChain expects to process higher transactional throughput and guaranteed data finality should the community choose to support the upgrade. The advantage might attract more companies to collaborate. Moreover, according to VeChain, the upgrade promises to achieve the mentioned advantages without compromising the network’s security.

With this new mechanism, the VeChainThor blockchain can maximize its high throughput capability while also ensuring data finality. What this means in practice is that very high-volume use cases can exist on-chain with the highest level of data security unfound in other blockchain platforms.

commented the network in July, after a successful testnet launch.

The said upgrade vote will expire on Oct 18. As of the moment of writing, the platform registered 623 votes in total. Meanwhile, the network’s governance token VET responded to the vote and jumped 13% in the past two days.

Also read: VeChain exploded by more than 50% after successful VIP-193 testnet

VET daily chart

The VET/USD pair traded at 0.12 in the Asian-Pacific session Thursday. The uptrend resulted in a looming Golden Cross between the 20-day exponential moving average (EMA-20; blue wave) and the 50-day EMA (EMA-50; red wave).

In hindsight, the Golden Cross occurs anytime a short-term MA crosses over a long-term MA. Thus, the bullish formation predicts more gains as long as the short-term MA holds the dominant position.

The digital asset conquered a support/resistance line at $0.11 early in the Thursday session. Moreover, it hinted at an upcoming surge with another bullish formation: Inverse Head and Shoulders (IHS).

The pattern consists of three consecutive dips connected with a mutual resistance line (neckline). On the VET/USD chart, the neckline lies at $0.124. The middle dip is lower than the other two and constitutes the head. The two dips on each side are called the shoulders.

The formation predicts that the digital asset will bottom out at the head and surge after crossing the neckline. As the current price stands right at the neckline, the upcoming sessions will show if the prediction has merit.

Also read: VET bounces 20% in 24 hours as VeChainThor vows to beat Bitcoin on climate friendliness