The VeChain price has lagged its peers in the past few weeks. The VET token is trading at $0.1057, which is about 15% below its highest level this month. Its total market capitalization has declined to more than $6.7 billion, making it the 27th biggest cryptocurrency in the world.
Why VET has lagged
VeChain is a leading blockchain project that targets enterprise developers. The platform uses the so-called VeChainThor technology, which developers use to build all types of applications. As a result, companies can use the technology to address key challenges like food safety traceability, logistics, document management, and agriculture, among other areas.
VeChain’s technology has been embraced by many large companies, mostly those in China. Some of the companies using this technology are BMW, Bayer, and Walmart. It is also used by several hospitals to solve some of their biggest challenges.
The Vechain ecosystem has two cryptocurrencies. It has VET, which is the native token for the ecosystem. It also has VTHO, which provides the energy that is needed to handle transactions in the network.
The VeChain price is struggling even as the developers announced a new vote for the next version of the VeChainThor Mainnet. This upgrade will be known as SURFACE (PoA 2.0). It will make it a secure and a relatively fork-free approach to chain extension. In most cases, cryptocurrency prices tend to rally when there is a major upgrade.
There are two reasons why VET price has struggled recently. First, the performance is mostly in line with the performance of other altcoins. A closer look shows that most of them have diverged with Bitcoin, which recently jumped to $57,000.
Second, there are signs that the enthusiasm that was there a few months ago has waned. Indeed, Google searches for key cryptocurrencies like VecChain is at a substantially lower level than where it was.
VeChain price prediction
The daily chart shows that the VET price has been under pressure in the past few weeks. After staging a strong rally between July and September, the price has dropped by more than 33%. Also, the volume has been in a downward trend while the price is along the 25-day and 50-day moving averages.
Therefore, the coin will likely remain in the current range for a while as investors wait for another catalyst. The key levels to watch will be the support and resistance at $0.0815 and $0.1250, respectively.
