Crypto expert explains why VeChain price is set to soar

VeChain price continued its strong bull run and hit a two-year high as the altcoin index rose.

VeChain (VET) has surged 270% from this year’s low to $0.080, pushing its market cap to over $5.7 billion. Its rise is in line with other cryptocurrencies such as EOS, NEO, and Zilliqa, which rose during the 2021 bull run.

Some analysts predict that the cryptocurrency will move even higher, noting the growth in the ecosystem and practical applications. In his statement, Michel van de Poppe pointed out the partnership of the VeBetter platform, which has completed more than 335,000 transactions, with the popular US sports organization UFC.

Another catalyst for VeChain’s price rise is Grayscale’s recent decision to list it as an “undervalued” asset. This suggests that the company may launch a fund similar to the Grayscale Bitcoin Trust. Other assets evaluated include Bittensor, Chainlink, Filecoin and The Graph.

In an X post, crypto analyst Gremlin Mystery predicted that VeChain’s price could jump to $0.175, representing a 150% increase from the current level, citing strong technical indicators.

The main potential risk for VeChain price is that the amount of assets in the DeFi ecosystem is quite small. DeFi total value is pegged at $877,058, making it one of the smallest layer 1 networks in the crypto industry.

VeChain price analysis VET price chart | source: crypto.news

VeChain’s price has rebounded in recent weeks, rising over 270% from November lows. This recovery follows months of a falling wedge formation, a widely accepted bullish signal.

The coin also formed a golden cross pattern with the intersection of the 200-day and 50-day moving averages. Additionally, it climbed above the key resistance level at $0.0550, the February 2024 high.

Therefore, the likely scenario is that VeChain price falls and retests the support at $0.0550 and then resumes the uptrend. This pattern is known as a breakout and retest and is a very popular continuation sign.

More gains will be confirmed if the coin breaks above the weekly high of $0.080. If successful, VeChain may continue to test the $0.10 level.