VeChain price has been a frontrunner, but may be due for a consolidation

VeChain price has gained 545% from the cup-with-handle breakout in late December, but it is now at record or near-record overbought levels on multiple time frames and hitting key short-term Fibonacci levels.

Vechain price looking for fee reduction and cost optimization for corporations

Through collaboration, partnerships, and integrations into well-known, thriving businesses, it will propel blockchain projects from nascent ideas into long-term sustainability through progressive adoption. 

VET, a blockchain-powered supply chain platform, has been cultivating and establishing high-profile business collaborations, recently with Salesforce (CRM). It was announced earlier this week by VeChain that CRM has chosen it “as the blockchain of choice in sample enterprise adoption case & successfully connected #VeChain ToolChain with Salesforce!”

The positive benefits of collaborative relationships like the Salesforce case have been the engine behind the steady increase in price in 2021. In fact, over the last week, VET has gained over 50%, shaken loose from the 361.8% extension of the 2018-2020 bear market, and tested the 261.8% extension of the March correction.

It is time for speculators to prepare for some type of consolidation. The 361.8% extension of the 2018-2020 bear market is just above the current price at $0.166, coupled with the extreme overbought conditions on the daily and weekly charts. For example, the daily Relative Strength Index (RSI) is at a similar level that preceded the corrections in February and March. 

Moving forward, a correction should be short and knock VET down to the 23.6% retracement of the cup-with-handle rally at $0.120. Profit-taking could accelerate and drive the altcoin down to the 38.2% retracement at $0.101, just above the 21-day simple moving average (SMA) at $0.099 and the infamous 361.8% extension of the 2018-2020 bear market at $0.097. Any further weakness would need to be evaluated upon a break of those levels.

VET/USD daily chart

Price can continue to rally, despite weaker momentum, so speculators should plot the 361.8% and 461.8% extensions of the March correction at $0.166 and $0.191, respectively. Why? You just can’t rule out new, positive VET developments.