VeChain price continued its strong bull run, reaching its highest level in over two years as the altcoin index rose.
VeChain (VET) climbed to $0.080, marking a 270% increase from its lowest level this year and pushing its market cap to over $5.7 billion. Its rally aligns with other cryptocurrencies that surged during the 2021 bull run, such as EOS, NEO, and Zilliqa.
Some analysts predict further upside for the coin, highlighting its ecosystem growth and practical applications. In a statement, Michel van de Poppe noted the VeBetter platform, which has completed over 335,000 transactions, and its partnership with UFC, a popular U.S. sports organization.
Another catalyst for VeChain’s price surge is Grayscale’s recent decision to list it as an asset “under consideration.” This suggests the company might launch a fund similar to its Grayscale Bitcoin Trust. Other assets under consideration include Bittensor, Chainlink, Filecoin, and The Graph.
In an X post, crypto analyst Gremlin Mystery predicted VeChain’s price could jump to $0.175, representing a 150% upside from the current level, citing strong technical indicators.
A potential fundamental risk for the VeChain price is that the amount of assets in its DeFi ecosystem has been quite small. It has a DeFi total value locked of $877,058, making it one of the smallest layer 1 networks in the crypto industry.
VeChain price analysis
VeChain’s price has rebounded in recent weeks, rising over 270% from its November lows. This recovery followed months of forming a falling wedge pattern, a widely recognized bullish signal.
The coin has also formed a golden cross pattern as the 200-day and 50-day moving averages crossed. Additionally, it moved above the key resistance level at $0.0550, its February 2024 high.
Therefore, the likely scenario is where the VeChain price drops and retests the support at $0.0550 and then resumes the uptrend. This pattern is known as a break and retest, and is a highly popular continuation signs.
Further gains will be confirmed if the coin climbs past $0.080, its high for the week. If successful, VeChain could move on to test the $0.10 level.
