While the majority of crypto traders discuss and focus on a variety of bullish and bearish views on Bitcoin, many altcoin companies are jumping in and making big strides.

One of them is the VeChain project’s VET coin, a blockchain-based platform focused on enhancing supply chain management processes.

The main focus of the project is to provide solutions that allow consumers and retailers to verify the authenticity and quality of the products they have purchased.

Looking at the VeChain project, there are many similar projects that all aim and aspire to solve a problem through the use of blockchain.

So why all the fuss about the VeChain project?

VET is breaking the 200-day exponential moving average for the first time since summer 2018.
For the first time since the listing, VeChain succeeded in breaking the 200-day exponential moving average (EMA), as can be seen from the following chart:

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On the daily chart of VeChain we notice that it is not only moving above the 200-DMA and EMA, but also breaking the 14-month downtrend.

Similar to the downtrend breakout, the falling wedge pattern with bullish divergence formed the bottom during August and September of 2019.

Remarkably, bullish divergence and descending wedge patterns are one of the most reliable bottom indicators when trading.

Once again I manage to be strict, given that this has happened in the daily time frame, it often takes a while before the differences become active.

After confirmation, a slightly higher low was established before the long-term downtrend was broken.

Notably, a massive increase in volume can be seen after the downtrend is broken, which is a strong signal.

The smaller time frames provide a clear view of the price movement of VeChain.

Regular breakout to the downside, including a retest of 0.00000041 satoshis before breaking up to 0.00000062 satoshis, next target.

Only minor retesting and consolidation were needed to push the price up.

This breakout of 0.00000060 satoshis leads to a new increase in price, which is currently targeting the high range of 0.00000080 to 0.00000082 satoshis.

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Meanwhile, the Relative Strength Index “RSI” is showing its highest level since the inclusion on several time frames.

VET Coin vs USDT Coin Ready for a Bounce?

The USDT chart shows some of the same signals as the Bitcoin chart.

There is a heavy move up from the local low at $0.003, slight consolidation, and an eventual recovery from the higher range at $0.006.

This move triggers a strong rebound of the $0.0051 level which was previously a resistance that turned support a few days ago.

VET coin price in USDT is hovering around resistance with the RSI in overbought areas.

The price needs to continue producing green candles to prevent it from creating a bearish divergence.

Bullish scenario:

Looking at the moves of VeChain, a bullish scenario is more likely than a bearish scenario.

The first scenario would be a live copy of the movements before the 0.000000060 to 0.000000062 satoshi break a few days ago.

In this scenario, the price will continue to move towards the higher term, consolidate a little and continue heading towards the next level at 0.00000100 satoshi.

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The second scenario requires the decline first, which is a short-term bearish view.

In this regard, we still have to note the rise of the RSI on several time frames.

This could indicate a bounce and test the bottoms of the range at 0.00000060 – 0.00000062 satoshis before the price is ready to move to the higher range at 0.000080 – 0.00000082 satoshis.

Traders may prefer to look for a long entry in that area or play a breakout if VeChain turns on the 0.00000080 satoshi area as support.

Bearish scenario:

A bearish view may emerge if the VET/USDT pair is unable to continue to show strength, confirming bearish divergences on the higher time frames.

In this regard, traders may look for a retest of the 0.000000060 satoshi area and a possible dip below that area.

Given the strength of altcoins and the volume of movement, this is unlikely to happen.

However if VeChain goes back to the low range and doesn’t find enough strength to bounce back with volume

A possible pullback towards 0.000000050 satoshis is a real possibility.

There are several reasons for the possibility of a retracement as Bitcoin could make choppy moves that could cause market chaos again.

Article taken from Source behave.

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Learn about the VeChain project and the project’s digital currency (VET)

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