Following Chinese President Xi Jinping’s decision to put the nation at the forefront of blockchain technology, VeChain (VET) experienced a massive rally. Since then, this cryptocurrency is up 176 percent. And, the bullish momentum could prolong as the VeChain Foundation continues to expand the utility of this token.
Tokenizing in-game assets
Jamie Thomson, a British writer and winner of the Roald Dahl Funny Prize 2012, announced that one of his best selling book series in the 1980s, The Way of the Tiger, would be revived and renamed Arena of Death.
In a press release, Thomson revealed that the “ninja-fuelled, samurai-packed” gamebook would be developed into a blockchain card game powered by VeChain.
“We were going to relaunch the series into a computer game format but this new technology (blockchain), just made more sense. Imagine playing Magic the Gathering but knowing if you owned a card, it really does belong to you. Or if we say there are only 100 editions of an item or skill, you know there really are only 100 editions.”
The award-winning author wants to capitalize on the increasing popularity that non-fungible tokens have in the gaming world. Just as many other games, such as Gods Unchained, have been able to benefit from the use of this technology.
The decision to launch the game on the VeChain protocol is mainly related to its scalability and ease of development. According to Thomson, VeChain makes digital cards and in-game items possible “without having to deal with all the crypto stuff.”
VeChain is also expanding its uses into a wide range of industries thanks to its blockchain-as-a-service platform, ToolChain. This is a solution that provides different services to any sized business, including supply chain management and process control as well as data deposit and certification.
In August 2018, for instance, the VeChain Foundation began working on a drug traceability, monitoring, security, and auditing platform. The idea was to help China’s pharmaceutical industry, which has been tainted with multiple scandals regarding falsely documented and illegally sold vaccines.
A report by Xinhua News Agency, the official state-run press agency in China, revealed in mid-November that the nationwide vaccine tracking system is set to be launched in March 2020.
According to Yan Jiangying, deputy director of the National Medical Products Administration:
“The system will cover information on the entire supply chain of products of all domestic vaccine manufacturers and vaccination information from health departments. The establishment of the national system will integrate the whole process of vaccine production, circulation, and vaccination so that vaccines can be trackable. [It] will enable improved visibility into order status, shipment status, and provider inventory of vaccines, for authorities to better supervise.”
Additionally, VeChain unveiled the first cross-continental logistics and trades solution based on a public blockchain for the food and beverage industry early last month. Dubbed Foodgates, it would provide verified and certified information about the full lifecycle of different products.
Kevin Feng, COO at VeChain, believes that the immutability of VET’s public blockchain in combination with verifiable information makes this solution “unique.” Users would be able to track any product such as beef from “cow selection, slaughtering, packing, cross-continental shipping all the way to restaurants.”
As the VeChain Foundation continues expanding the utility of VET to solve real-world issues, the price of this cryptocurrency is skyrocketing. Over the last 36 hours, this cryptocurrency surged over 36 percent to hit a high of $0.0078. And, it could be signaling a further advance.
VET technical analysis
Investors seem to be very bullish about the future of VeChain. This cryptocurrency recently reached the highest point in over five months based on “Social Volume.” As many as 260 posts were published per hour, according to data from LunarCRUSH, a community-driven insights provider.
The majority of these posts carry positive statements about VET. This has been able to push the bullish sentiment around this cryptocurrency further. In the last two days, VET reached a 3,114 score on LunarCRUSH’s bullish sentiment scale. And, now it ranks first among all other cryptos in terms of performance and social activity.
The positivism around VET can also be perceived on its price as a golden cross developed on its 1-day chart. This technical formation occurred in late October between the 7, 30, and 50-day moving averages. As the short-term MA crossed above the long-term MA, it signaled a bullish breakout resulting in a massive 176 percent rally.
Although VeChain recently retraced over 40 percent, the 50-day MA was able to act as support allowing this crypto to rebound. Now, VET is back above the 7-day moving average, which is a clear sign that the bullish trend will continue.
The TD sequential indicator also supports the idea that VET is bound for a further advance. This technical index presented a buy signal the moment the current green two candlestick began trading above the preceding green one candle.
Along the same lines, the moving average convergence divergence (MACD) turned bullish. This technical indicator follows the path of a trend and calculates its momentum. As the 12-day EMA crossed above the 26-day EMA, the odds for another upswing increased.
If VET is indeed bound for a bullish impulse, it would first have to close the recent high of $0.0081. This is where the 65 percent Fibonacci retracement level sits. Such an advance would likely take it to hit the next level of resistance around the 78.6 Fib, at $0.0090.
This is also where IntoTheBlock’s In/Out Money model sees 1,800 addresses containing 10.64 million VET, which could serve as resistance. This technical barometer considers the distribution of VeChain throughout individual wallets based on the current price. According to it, the major resistance point that this crypto would have to face if it continues surging sits between $0.0128 and $0.0136, with 1,800 addresses holding nearly 40 million VET.
Despite the bullish outlook, it is worth noting that a break below the 61.8 Fib could trigger a pullback. A spike in sell orders from the current price level could be followed by move downwards to the 50 Fib, at $0.0068.
The VeChain Foundation continues to prove the real utility that VET has. This could be the main driver behind the massive rally that this cryptocurrency experienced over the last two months. Although VeChain founder Sunny Lu recently stated that “99% of a [token’s value] is linked to speculation,” the Foundation is making strides to bring value to society by developing real-world solutions. This could be the main reason why, technically, VeChain seems to be bound for a further advance.
The post Here is what could be driving the massive VeChain (VET) rally appeared first on CryptoSlate.