VeChain targets $1 billion market as VET price contemplates 22% ascent

VeChain price is currently consolidating below the equilibrium as the bullish momentum slows down. While this sideways movement could lead to a breakout in either direction, investors can expect a move higher considering the general market structure of Bitcoin price and VeChain's new entrance into the Chinese pet food market.

Pet food market in China is ripe for blockchain solution

VeChain blockchain wants to standardize the variables in the pet food market in China, which mainly contains counterfeits and low-quality products. With the use of blockchain technology, VeChain intends to revolutionize this $1.1 billion market by including the entire lifecycle on the blockchain. This process involves proof of origin, proof of ingredients and traceability of the whole value chain.

In this direction, the announcement reads,

VeChain has engaged with multiple companies in the pet food industry, and many of them have expressed interest in blockchain technology to solve the aforementioned problems and pain points.

Interestingly, Vechain and its suite of products can be implemented in a few days to weeks through an already established Supply Chain Management (SCM) and Customer Relationship Management (CRM) software portfolio.

In addition to the above, VeChain is also working with the ReSea project to clean up the oceans across the world and record this process on the blockchain. The recorded data will be certified by their partners DNV, adding credibility to work done by ReSea.

VeChain price awaits a trigger for break

VeChain price rallied a whopping 98% from July 20 to August 8 and set up a swing high at $0.111. However, the Momentum Reversal Indicator (MRI) flashed a sell signal in the form of a red ‘one’ candlestick on the 12-hour chart, suggesting that a downswing is likely.

This technical formation forecasts a one-to-four candlestick correction. Therefore, investors can expect VET to retrace to the immediate support level at $0.0952. This move will offset the pent-up pressure and pave the way for sidelined buyers to jump on the bandwagon.

The resulting uptrend will likely push VeChain price to slice through the 50% Fibonacci retracement level at $0.106. A decisive 12-hour candlestick close above $0.106 will confirm the resumption of the ascent. In this case, market participants can expect VET to rally to the $0.116 and the $0.122 supply barriers.

VET/USDT 12-hour chart

While the upswing is likely, things could go south if the support level at $0.0952 is breached. This move will indicate a weakness among buyers and might allow the bears to push through the subsequent barrier at $0.0902.

While buyers might still be able to make a comeback above $0.0902, a breakdown of the August 3 swing low at $0.0825 will invalidate the bullish thesis and open the path for further descent.