VeChain is now undergoing some promising developments, as is the case with any blockchain-based endeavor. The official VeChain Twitter account said that things got worse in October, but the team is happy with the progress made so far on the VeChain network.
Vechain.energy aims to connect web2 and web3 communities. The developers recently said on Medium that the month of October saw the bridge feel “full, bumpy but complete”.
While the most up-to-date information can be found in the blog post, a snapshot attached to his Twitter tweet shows the steady development of the project. This is promising news for the project.
However, there is always a unique cryptocurrency that is issued with a new crypto project. The value of VET, VeChain’s native currency, has increased dramatically after the crypto market meltdown this year. there was a 10% weekly profitCoinGecko, based on Wednesday’s data.
The only remaining question is whether or not VET will maintain its upward trajectory.
— vechain.energy (@VeChainEnergy) 31 October 2022
VET rally may be only temporary
Although encouraging the growth of VeChain has led to its price increase, it should be noted that most of the top 30 cryptocurrencies are also witnessing a price increase.
However, VET’s rally may be tentative. Based on the past and current price fluctuations, a flag and pole pattern has been formed. This is the third consecutive break of the bearish pattern, which will put downward pressure on the coin.
Market capitalization is where growth can be seen. According to moon crush, VET’s market capitalization increased by over 8%. However, this expansion is counterbalanced by a nearly 2% decline in TVL.
Additionally, the coin has conflicting RSI, Stoch RSI and CMF values, with bullish RSI and CMF values and bearish Stoch RSI values.
What are the bearish trends for VET?
All these bearish chart changes are supported by the impending bearish convergence along the EMA ribbon. This could be a significant issue for VET, as it could result in a bearish break on the current flag and pole structure.
A bearish breach of the current trading pattern could send VET price down towards the 100 Fibonacci retracement levels.
Therefore, potential VET investors should be cautious about taking long positions and should consider using the negative Stoch RSI value and short at the current market price.
VET market cap at $1.70 billion on the daily chart | Featured image from Zipmex, Chart: TradingView.com Disclaimer: The analysis represents the author's personal understanding of the crypto market and should not be construed as investment advice.