This factor could be key to the likes of VeChain hiking by 15% soon
VeChain [VET], an under-$1 alt, has been garnering a lot of attention of late. The 24th-ranked coin based on market capitalization has managed to fetch its investors over 15% returns in the last 7 days alone.
However, the last 24 hours have been quite gloomy for VET as it shed close to 2% of its value. This price reaction came on the back of VeChain’s latest announcement with respect to its mainnet upgrade.
Less than a day ago, the VeChain Foundation revealed that a majority of its stakeholders have agreed to implement the first phase of PoA 2.0 on the VeChainThor mainnet. Its tweet noted,
“Mainnet will be upgraded by the end of Oct.”
No ripple effect
The aforementioned announcement, however, failed to trigger an immediate positive reaction on the price charts. Despite the same, interestingly, the token’s price-centric metrics seemed to paint a bullish picture, at the time of writing.
The alt’s volatility, for starters, has been increasing. Data from Messari brought to light that the same has increased by almost 1.5 times when compared to August’s lows. Even though volatility is a double-edged sword and can instigate a price swing in any direction, it should be noted that VET’s price has been able to thrive better in more volatile environments.
Further, over a one-month window, even the alt’s risk-adjusted returns ratio has changed its course. At the time of writing, the same had a positive value of 1.05. This indicated that investors have been fetching fairly decent returns for the risk borne by them – A healthy sign.
Additionally, people from the community have evidently been excited about the upgrade. They’ve been pretty vocal about the same on the social platform, with the same evidenced by Santiment’s social volumes and social dominance metrics.
Even though the upgrade might not end up having direct impact on VET’s price, the community euphoria has the potential to instigate a rally. As can be observed from the chart attached, price tops have more often than not, coincided with high social sentiments.
Any other potential alts that can rally?
Well, social sentiment is quite a crucial tool that helps in gauging the market participants’ side of things. Many altcoins from the market have pumped in the recent past owing to positive sentiments.
Consider this – For the week that ended on 15 October, alts like CAKE, WAVES, and EGLD fared quite well in terms of sentiment. They were, in fact, ranked 1, 2, and 3 on Sentifeed’s sentiment leader chart.
In and around the aforementioned week, all alts fetched their investors with more or less 15% returns. Thus, the aforementioned data is a testament to the impact of social buzz on the price of cryptocurrencies.
In all, the same factor could end up becoming quite handy for VET as well. Thus, crowd euphoria along with all the aforementioned factors has the potential to pull up VeChain’s price by 10%-15% in the coming week. Parallely, if the other three alts also maintain their position on the leaderboard, they would also likely witness similar returns.
