- VeChain’s blockchain technology is adopted by ReSea Project to end the plastic ocean crisis.
- VET price is approaching a demand zone that could trigger a reversal, resulting in a 65% upswing.
- A breakdown of $0.115 would invalidate the bullish thesis and kick-start a 15% downswing to $0.098.
Despite shedding over 40% of its token value in less than two weeks, the VeChain blockchain has witnessed a palpable adoption by a major environmental group today. At the time of writing, VET price is feeling the brunt of the market downturn but vies to surge higher.
ReSea Project and VeChain blockchain’s impact
According to the recent announcement, ReSea Project has removed 305,240 Kg (672,938 lbs) of plastic from oceans and rivers. This movement has helped prevent more than 15 million plastic bottles from polluting naturally occurring water bodies like oceans, rivers and lakes in four months.
The report further reads,
With the blockchain platform from VeChain Tech used to collect, record, and monitor collection data, we ensure that all data is stored securely, time-stamped, and immutable. The certification from DNV provides independent proof of our progress and traceability of the total collection process.
While VeChain adoption is already bearing fruit, VET price has seen a massive downfall over the past week.
VET price at an inflection point
VET price has dropped nearly 43% over the past 11 days and, as a result, pierced the demand zone extending from $0.126 to $0.141. Between April 10 and April 12, this area acted as a refueling point for buyers, leading to an 82% upswing.
Therefore, investors can expect a resurgence of buying pressure as VeChain price dips into this zone again. Further supporting a bounce from this area is the Momentum Reversal Indicator (MRI), which flashed a buy signal in the form of a green ‘one’ candlestick. This setup forecasts a one-to-four candlestick upswing.
A potential spike in buying pressure could result in a 54% upswing to the 50% Fibonacci retracement level at $0.218. If this bullish momentum persists, investors could see VET price test the lower boundary of the supply zone that stretches from $0.235 to $.266. Such a move would represent a 65% rise.
VET/USDT 12-hour chart
On the flip side, if the said demand barrier fails to support the collapsing VET price, the downtrend will likely continue. A decisive 12-hour candlestick close below $0.115 will invalidate the bullish thesis.
Under these circumstances, market participants could expect VeChain price to slide 14% to the support level at $0.098.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.