VeChain [VET] registers exponential growth, but is a reversal underway?
- VeChain’s price increased exponentially over the last seven days
- The bulls were leading the market and indicators suggested a further uptick
Lookonchain, in a 20 February tweet, revealed that the prices of Chinese coins were on the rise over the last few days. VeChain [VET] was one coin that experienced massive growth, with its price increasing by double digits.
Prices of Chinese coins on @milesdeutscher watchlist are rising.$KEY $CFX $ACH $NEO $FIL $FLM $QTUM $VET $QKC $HIGH $TVK $COCOS pic.twitter.com/KYAMrF928W
— Lookonchain (@lookonchain) February 20, 2023
Realistic or not, here’s VET market cap in BTC’s terms
According to CoinMarketCap, VET’s price increased by over 38% in the last seven days, and at the time of writing, it was trading at $0.03162 with a market capitalization of over $2.29 billion.
Interestingly, VET’s momentum seemed to have increased as its price went up by over 6% in just the last 24 hours. A possible reason for this uptick could be the recent developments in its ecosystem. The latest such development was the launch of VeChain’s VeWorld, the network’s new official wallet.
We've got exciting news! #VeWorld – our new official wallet, is now available: https://t.co/Yy8thhbvLm!
We're continually lowering barriers to entry for #blockchain & crafting an optimal real-world #Web3 environment.
Build the future on $VET! #VeChainhttps://t.co/zO3Mj6qSt8 pic.twitter.com/8VqCBAMX5z
— VeChain Foundation (@vechainofficial) February 20, 2023
This is how the market is reacting
VET’s daily chart revealed that the bulls were dominating the market, which drove the token’s price upwards. The distance between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was increasing, suggesting that the bulls were not taking the back seat. The MACD’s findings also complemented those of the EMA Ribbon, as it too suggested a bullish advantage in the market.
On top of that, the Bollinger Bands pointed out that VET’s price was entering a high volatility zone, increasing the chances of a continued uptrend. The market indicators, combined with VeChain’s much-touted upcoming “Hive” event, appeared to be quite bullish for the network.
However, VET’s Chaikin Money Flow (CMF) registered a downtick, which was a bearish update. Another point of concern was the Relative Strength Index (RSI) as it entered the overbought zone, increasing the chances of initiating selling pressure.
Read VeChain’s [VET] Price Prediction 2023-24
Is the surge all hype?
Not only was the market’s reaction in favor of VET, but a few of the on-chain metrics also supported the price increment. For instance, positive sentiments around VET registered a spike, reflecting the crypto community’s confidence in VET. VET’s Binance funding rate also spiked twice last week, suggesting increased demand in the futures market.
Nonetheless, VET development activity has decreased compared to the previous week, which is a negative sign as it indicates fewer efforts from developers to improve the network.