VeChain Recovery Hits a Barrier

The VeChain price is struggling even after a series of positive news about the network. VET is trading at $0.0860, which is about 42% above the lowest level last week. It has a market capitalization of more than $5.5 billion making it the 25th biggest coin in the world.

VeChain news. VeChain has made some substantial progress in the past few months. Last week, the developers announced that a local Chinese government has adapted VeTrust. VeTrust is a blockchain project that provides a standardised framework for self-assessment in infection risks management. The new adaption by the Suzhou New District will see the project have an impact on more than 300k people. 

Another major event is that the San Marino government had approved a National Green Pass that is built using the VeChainThor network. The Covid certificate covers people who has been vaccinated against coronavirus.

VeChain was also recently featured by Xinhua, a State Media agency. The agency noted that blockchain technology was increasingly being used widely in the country. So, what next for the VeChain price?

VeChain technical analysis

The daily chart shows that the VET price has dropped by more than 70% from its highest level this year. This is in line with the performance of other cryptocurrencies. We also see that the coin has formed a descending channel that is shown in blue. It is now along the upper side of this channel. 

Further, it has moved below the 25-day and 50-day exponential moving averages. Most notably, the coin is between the first and second support levels of the Andrews Pitchfork indicator. Therefore, the bearish trend will likely remain so long as the price is below the two moving averages. If this thesis is correct, we can’t rule out another decline to $0.0600.

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VET price chart

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