• VeChain price battles descending trend line with little volume commitment.
  • Key Fibonacci retracement level of the April decline detaining price strength.
  • VET to capitalize on enterprises bringing NFTs to the ecosystem.

VeChain price has lagged the collective rebound in the cryptocurrency complex with a meager 12.5% rally since the April 17 low. To overcome trend line resistance and march to the all-time high, VET may need a catalyst.

VeChain price yet to price in a new eNFT ecosystem

In a lengthy analysis, VET concluded that enterprises would be fundamental to the mass adoption of NFT. The optimum way is to work with them to co-develop a vibrant eNFT (Enterprise NFT) Ecosystem on the VeChain Thor blockchain.

Individuals creating NFTs do it for fun or as a moment to remember, but it is projected that enterprises will have a more precise purpose when designing and developing NFTs. Enterprises will be compelled to build and improve facilities to improve the experience for users. As a result, it would ensure the quality of NFTs.

Enterprises, unlike individuals, are committed to making sure that the ownership associated with an NFT issued as the whole or part of a product is enforced. They have an embedded interest in ensuring that the product is delivered to customers as stated, or it will damage the company’s reputation, leading to an exodus of clients and a loss of profitability.

Undoubtedly, enterprises will bring new users to the ecosystem.

Once eNFTs are issued on blockchain, and become tradable on marketplaces, it would be natural for the eNFT owners and those who pay close attention to the eNFTs to join the ecosystem.

VET believes that VeChainThor public blockchain’s Proof of Authority (PoA) is the perfect solution for building an enterprise-grade public blockchain. PoA 2.0 is poised to improve network security and lift the upper bound of the maximum throughput of VeChainThor by allowing nodes to “best utilize the network bandwidth for transmitting transactions most of the time.” Moreover, it guarantees ample decentralization of the network via demanding that sufficient qualified nodes be participating in its consensus process. It provides an absolute guarantee of public ledger safety.

Since the April 23 bullish hammer pattern on the fourth largest daily volume in 2021, VeChain price has been drifting higher, holding the upper trend line of an ascending channel. The upside is contained by the 61.8% retracement of the April decline at $0.209. Now VeChain price has stumbled into the declining trendline from the April high, putting bullish speculators in a more challenging technical position.

The primary objective for VeChain price is to overtake the all-time high at $0.282, but it will not materialize if the volume remains below average. A final breakthrough would release VeChain price to experiment with the 361.8% extension of the August-November correction in 2020 at $0.309, representing close to a 50%

VET/USD daily chart

VET/USD daily chart

For the mildly bullish outlook to be invalidated, VeChain price would have to undercut the April 23 low of $0.128, which currently appears unlikely.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP