The VeChain price is holding steady close to its highest level during the weekend. VET is trading at $0.1100, which is a few points below the weekend high of $0.1165. This brings its total market capitalization to more than $6.9 billion, making it the 27th biggest cryptocurrency in the world.
VET price action
VeChain is a blockchain project that helps companies solve real-world problems like know-your-customer (KYC), logistics, and digital content distribution. The network is widely used by some relatively big companies in China and South-East Asia region. Some of the top companies that use VeChain’s technology are Bayer, Walmart China, and DNV.
Like all altcoins, VeChain had a difficult September as global risks rose. First, there were major regulatory risks coming from China and the US. China announced that all cryptocurrency transactions were illegal while the US Securities and Exchange Commission (SEC) started an investigation into stablecoins.
The VeChain price also declined because of the relatively stronger US dollar and the rising risks in the economy. Some of the biggest risks that affected the industry were the debt ceiling issue and the Evergrande crisis. These risks pushed the fear and greed index to drop and the CBOE VIX index to rise by more than 20% in September. Stocks also had their worst month this year.
Some analysts believe that the price of cryptocurrencies will start rising in October. Besides, the existing risks have already been priced in. Also, October tends to be a positive month for stocks and other assets, which could be a catalyst. Most importantly, after dropping sharply in September, some investors will likely rush to buy the dips.
VeChain price prediction
The four-hour chart shows that the VeChain price has formed what looks like an inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign. The price is also slightly above the 25-day and 50-day moving averages (MA), which is also bullish. The Relative Strength Index (RSI) has also been rising.
Therefore, the price will likely keep rising as bulls target the next key resistance level at $0.15, which is about 35% above the current level.
