The price of VeChain (VET / USD) declined on Friday as investors waited for US personal consumption expenditure (PCE) data from the United States. VET fell to $ 0.1065, which was 26% below the weekly high of $ 0.1410.
VeChain is a fast growing enterprise focused blockchain network that started in 2015. The network migrated from the Ethereum blockchain in 2018 and is now the largest platform on the VeChainThor platform. VET is the native token that powers this network, while VTHO is the token that drives gas costs on the VeChainThor platform.
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In recent years, VeChain has grown into one of the largest blockchain projects in the world. In fact, the total VET in circulation is worth more than $ 6.9 billion, making it the 21st largest cryptocurrency in the world. The price of VET has increased more than 2,000% in the last 12 months and 500% this year.
This growth was mainly due to the overall performance of Bitcoin and altcoins in the last 12 months. Analysts believe that the Fed’s policies of low interest rates and unlimited quantitative easing They have helped drive up the prices of riskier assets.
VeChain price has also increased due to significant activity on the VeChainThor platform. In recent years, many large Chinese companies such as Walmart China, Haier, BYD, and LVMH have adopted the platform. Other firms such as PricewaterhouseCoopers and Salesforce are evaluating it.
VeChain fell sharply last week as concerns about high interest rates in the United States and regulations in China drove investors away from cryptocurrencies. Its price fell to $ 0.06585, which was 76% below its all-time high.
This week, the price rallied as investors rushed to buy the drop. The dovish comments from the Federal Reserve’s Randal Quarles also helped drive its price higher.
On Friday, the price fell due to profit taking and while investors waited for the latest PCE data from the US, economists expect the data to show that the PCE rose by more than 3% in April, while the PCE Basic increased 2.9%. This is a number that is closely followed because it is the Federal Reserve’s favorite indicator of inflation.
VeChain Price Analysis
VeChain price chart
The two-hour chart shows that the VET price rallied to $ 0.1405 this week. This was a notable price as it was slightly above the Fibonacci retracement level of 38.2%. Along the way, the price formed what appears to be an inverted head and shoulders pattern. In fact, the current drop appears to be part of the right shoulder.
In price action analysis, an inverted head and shoulder is usually a bullish sign. Therefore, the price is likely to rebound as investors target the 50% retracement level at $ 0.1578. However, a drop below $ 0.9037 will invalidate this prediction.
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