For today we have chosen a 1 day time frame graph of VeChain. We will first talk about, price and RSI daily trend line, which will then serve us as a building block for a volume analysis that will lead us to our final forecast. If you look into the picture and asses the first price and RSI trend line at which price currently dwells, you can see that it held as a support during the entire rallie up. We will therefore make this trend line our reference point and assume that if this trend line gets broken, we will most likely touch the seccond trend line during the secondary bearish correction. If volume increases, and downward pressure is strong enough, it’s even possible that the third one will be touched. Since the price is led by the volume, it’s gonna be the second thing that we are going to asses. If you look at how volume reacted on each break out, you will find out that volume tends to increase on the breakout and decrease as the price consequently retraces. That is the first bullish sign. On top of that, on each rallie, the volume has always been able to increase above its high on the previous rallie. That’s in the picture marked by the green upward pointing arrow, and further enforces the longer time frame bullish sentiment. Currently, the volume is slowly decreasing as the price approaches the first price and RSI trendline resistance. If the two hold, it’s very likely that the rallie will continue until the first horizontal golden line. On the way, the price will have to first break through the first resistance and seccond resistance for it to reach the golden first golden target. If you decide to enter the position, be careful on how volume reacts as it approaches the seccond resistance. If the volume keeps slowly falling as the price rises to the resistance, it would suggest that the price has already reached its high on this rallie. Another bearish scenario could crystalize if the daily RSI trend line gets broken, and the bearish sign gets confirmed by the price breaking the trendline. In that case the odds would tip into favor of price reaching the next blue trendline either at the support number two or support number three.
For the current fundamental changes, we will use news that have come out in the past 10 days. The first important news came out on 8th April with the title “Norwegian Food To China In Latest Partnership”. In the article it’s possible to find out that VeChain has partnered with Noway In a Box and DNV GL to together create a trusted platform that brings high-quality sea food into China. Citing the article: “The partnership will Involve an app called My Story that was launched via the VeChainThor Blockchain platform around January of 2018 to work as a digital assurance solution for food and bevarages. It gives brands the opportunity to share the life of their products, allowing consumers to see crosscheck product’s origination and lifecycle without any hindarance and in a transaprent way.” As one of the important application of VeChain’s platform is exactly the assurance of origin, and tracability of supply chain to forster trust with buyers of luxurious items, this partnership is another step forward for VeChain’s adoption success.
Another positive news that Daneel discovered came out on 13th April with the title “VeChain Collaborates With Chinese Electronic Firm, Haier!”. In the article you can find out that at the recent even of Global Release of the Achievements of COSMOPlat Industrial Internet Eco Brand Platfor, Haier announced that they have collaborated with VeChain. Citing the article ”As per the officials from Haier, the strategic cooperation between both the firms is set to emancipate the clothing lifecycle management system via the public blockchain technology. This will improve the consumers’ trust, which is very crucial for a successful business.”. It therefore another case of emerging adoption of VeChain’s My Story app, which may attract more potential partners in the future.
The last news that enhance the bullish fundamental developments brings the article titled: “Vechain Partners with HBO, Addidas and SBTG”. The partnership in this case seems to not be on the continuous basis unlike in the two previous cases. On the other hand, it could be a beginning of a new trend in the sneaker industry. As you might know, limited edditions of sneakers with proven origins are traded daily for multiplies of their value. That brings a potential use case of the VeChain’s tracking platform since once the buyer wants to resell the sneakers, he will be able to prove the origin through VeChain. The upcoming sneakers are designed by SBTG, and they will bear a power independent chip inside the footwear to prevent counterfeiting. The chips will also contain behind the scenes videos of the Game of Thrones, to whom this limited edition is dedicated. The success of the plan is not yet guaranteed, though it’s likely that if the use case proves to be appreciated by the customers, more companies producing limited edition footware will join the trend to reap benefits of the trust that they can gain with this approach.
To read the article in the full, please refer to these links: https://go.daneel.io/news?s=vechain-vet-to-aid-transportation-of-norwegian-food-to-china-in-latest-partnership&fbclid=IwAR0r_Rhqz1P8xVP-_0t708aYSRPBnWMGUMUinXe3vQJGW4XTM5Dp_TBKnZk
https://go.daneel.io/news?s=vechain-vet-collaborates-with-chinese-electronics-firm-haier-&fbclid=IwAR0kCu4WMRTHL2fZ1VomqXfZt9lHImbBNaXQHjCyXRmiQpnMKjI314V0hNA
https://go.daneel.io/news?s=vechain-partners-with-hbo-adidas-and-sbtg&fbclid=IwAR1FjedO__SdtImJWqSrkePKeop4f0r0n93DGXPssBvAciVAFfQxgQQpfyA
Before you invest, please note that this is not a investment advice. This is merely technical analysis connected with the recent fundamental developments. If you would decide to invest, don’t forget to conduct a complete fundamental analysis of VeChain to find out if these fundamental changes fit within VeChain’s broader vision and development.
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