- VeChain (VET) hit a year-to-date high (YTD) during the Friday trading session.
- The 24th largest blockchain asset rose 8.57 percent to 114 sats, bringing its YTD gains up by more than 85 percent.
- Nevertheless, the VET/BTC uptrend is showing signs of cooling off, albeit holding a string of dependable support levels underneath.
VeChain’s crypto token VET rose 8.57 percent on Friday to hit its year-to-date high at 114 sats.
Traders flocked to the 24th largest cryptocurrency due to unfound reasons. But its intraday rally coincided with a review from Early Metrics on VeChain’s potential as a startup.
The globally renowned rating agency called the blockchain company as one of the fastest-growing startups, praising its growth logic, market positioning, and operational implementation. The favorable review appeared as VeChain powered a drug traceability platform for Bayer China, one of the world’s largest pharmaceutical firms in late May 2020.
#VeChain?is working with big consultancy companies: PwC, Deloitte & DNV-GL. They have customers like Walmart China, Bayer, BMW, H&M, BYD etc. They also highly focus on Health (E-HCert app, E-NewHealthLife) & Sustainability (Carbon Credit Project, Producers Market). $VET #VTHO
— Ron Dalton Ⓥ (@RonDalton01) July 2, 2020
The word-of-mouth visibly helped VeChain’s native crypto asset VET painting an incredible rally on Thursday. The climb also came as a part of a 200 percent rebound from the token’s March 2020 lows.
The blockchain industry is still at its nascent stage. But traders anticipate specific projects to utilize the distributed ledger to its full potential. And when some of these startups receive recognition by existing tech firms, they tend to attract traders to purchase the asses that back their blockchains.
VET, it appears, rose on a similar sentiment.
VeChain Technical Outlook
Another reason why traders preferred to migrate their capital into the VeChain market is an annoying Bitcoin. The benchmark cryptocurrency stands stuck in a $1,000-wide trading range for the last three weeks. Meanwhile, its price moves this week remains capped inside a $5,00-range.
VeChain breaking out of a Bullish Pennant. Source: TradingView.com
VET appears at an advantage against an underperforming Bitcoin. The crypto has just broken out of a Bullish Pennant structure that puts it en route to a fresh upside target towards 129-132 sats. Incidentally, the resistance area also coincides with the 78.6% Fibonacci level on the retracement from 158-high to 35-low.
The crypto token’s bullish bias is also gaining strength from a string of concrete support levels. At first, VET/BTC is trading above its 20-EMA (the green wave) and 50-SMA (the blue wave). Moreover, it is holding an incredible price floor at around 88 sats.
Despite the bullish signs, there remain risks of a downside correction as well, especially when Bitcoin starts rebuilding its upside scenario. Should that happen, VeChain would test all the support levels for a potential pullback.