Following the decision of Chinese President Xi Jinping to put the country on the cutting edge of blockchain technology, VeChain (VET) survived a mass rally. Since then, this cryptocurrency has grown by 176 percent. And the bullish momentum may continue as the VeChain Foundation continues to expand its use of this token.
Tokenization of in-game assets
Jamie Thomson, British writer and laureate of the Roald Dahl Funny Prize of the 2012 of the year, announced that one of his best-selling books in the 1980's “The Tiger Path” will be revived and renamed the “Arena of Death”.
In the press release Thomson said that “a samurai-filled ninja game will be turned into a blockchain-based card game powered by VeChain.”
Thomson confirmed:
“We were going to restart the series in the format of a computer game, but this new technology (blockchain) just made more sense. Imagine that you play Magic the Gathering, but knowing that you have a card, it really belongs to you. Or, if we say that there are only 100 issues of an item or skill, you know that in fact there are only 100 issues. ”
The award-winning author wants to capitalize on the growing popularity of non-playable tokens in the game world. Like many other games, such as Gods Unchained, have been able to benefit from the use of this technology.
The decision to launch the game using the VeChain protocol is mainly due to its scalability and ease of development. According to Thomson, VeChain makes it possible to use digital cards and game items "without having to deal with all cryptographic things."
Tracking Solutions
VeChain is also expanding its applications in a wide range of industries thanks to its blockchain as a service platform, ToolChain. It is a solution that provides a variety of services for businesses of all sizes, including supply chain and process management, as well as data storage and certification.
For example, in August 2018, the VeChain Foundation began work on a platform for drug tracking, monitoring, security, and auditing. The idea was to help China's pharmaceutical industry, which was infected with numerous scandals over falsely documented and illicitly sold vaccines.
The Xinhua News Agency, the official state-owned press agency in China, showed in mid-November that a nationwide vaccine tracking system should be launched in March 2020.
According to Yang Jianying, deputy director of the National Drug Administration:
“The system will cover information on the entire supply chain of products of all domestic vaccine manufacturers and information on vaccination from health departments. The creation of a national system will integrate the entire process of production, distribution and vaccination of vaccines so that vaccines can be tracked. [This] will improve the visibility of order status, shipping status, and inventory of vaccine providers so that authorities can better control it. ”
In addition, VeChain introduced the first intercontinental logistics and trading solution based on a public blockchain for the food and beverage industries at the beginning of last month. Duplicated by Foodgates, it will provide verified and certified information on the complete life cycle of various products.
Kevin Feng, Chief Operating Officer of VeChain, believes that the immutability of the publicly accessible chain of VET blocks in conjunction with verified information makes this solution “unique.” Users will be able to track any product, such as beef, from "cow selection, slaughter, packaging, cross-continental." delivery to restaurants. "
As the VeChain Foundation continues to expand the capabilities of VET to solve real problems, the price of this cryptocurrency is growing rapidly. Over the past 36 hours, cryptocurrency has grown by more than 36 percent and peaked at 0,0078 dollar. And this may be a signal of further progress.
Technical Analysis
Investors seem very optimistic about the future of VeChain. This cryptocurrency has recently reached the highest level in the last five months, based on the "Social Volume". According to LunarCRUSH, a community-based analytics provider, 260 posts are published per hour.
Most of these posts have positive reviews about VET. This allowed us to push the bullish mood around this cryptocurrency further. Over the past two days, VET scored 3114 points on the LunarCRUSH bullish sentiment scale. And now it takes first place among all other cryptocurrencies in terms of productivity and social activity.
VeChain Bullish Chart
Positivism regarding VET can also be perceived at its price as a golden cross unfurled on its one-day chart. This technical form occurred at the end of October between 7, 30 and 50-day moving averages. Since the short-term moving average crossed the level above the long-term moving average, it signaled a bullish breakout, which resulted in a massive rally of 176 percent.
Although VeChain recently recovered by more than 40 percent, the 50-day moving average was able to act as support to allow this crypto recovery to recover. Now, VET has returned above the 7-day moving average, which is a clear sign that the bull trend will continue.
VET / USD from TradingView
The TD Serial Indicator also supports the idea that VET is connected to move forward. This technical index represented a buy signal at the moment when the current green candle began to trade above the previous green candle.
VET / USD from TradingView
In the same vein, moving average convergence divergence (MACD) has become bullish. This technical indicator follows the trend and calculates its momentum. When the 12-day EMA crossed above the 26-day EMA, the chances of another rise increased.
VET / USD from TradingView
If VET is really aimed at a bullish momentum, it will first have to close the recent high of $ 0,0081. This is where the Fibonacci retracement rate of 65% is located. Such a move is likely to lead to the next resistance level near 78,6 Fib, at the level of $ 0,0090.
VET / USD from TradingView
This is where the IntoTheBlock In / Out Money model sees 1800 addresses containing 10,64 million TVETs, which can serve as resistance. This technical barometer takes into account the distribution of VeChain among individual wallets based on the current price. Accordingly, the main resistance point that this cryptography would have to face if it continued to grow is in the range of 0,0128 to 0,0136 USD, with 1800 addresses containing almost 40 million TVETs.
IntoTheBlock In / Out Money Model
Despite the bullish outlook, it is worth noting that a break below the 61.8 Fibonacci level may trigger a pullback. A jump in sell orders from the current price level may be followed by a downward movement to 50 Fib, at the level of $ 0,0068.
Forward movement
The VeChain Foundation continues to prove the real value that VET has. This may be the main driver of the mass rally that this cryptocurrency has experienced in the past two months. Although VeChain founder Sunny Lou recently stated that “99% [of the token value] is connected with speculation,” the Fund is doing everything possible to benefit society by developing real solutions. This may be the main reason why, from a technical point of view, VeChain seems to be preparing for further advancement.