- VET’s price climbed by 5.65% after VeChain showed signs of a major announcement on X.
- VET could test the $0.060 psychological resistance if bulls hold the support at $0.047.
- Decreasing money flow might trigger a retracement to $0.040.
On February 27, Layer 1 smart contract blockchain VeChain (VET) posted that it could soon disclose an update that would improve blockchain development in the ecosystem. Although VeChain did not share details, the post indicated that VeChain could be working on improving its adoption through the VeChainThor model.
For the unfamiliar, VeChainThor could enhance security and scalability for the project. Following the post, VET’S price increased. One hour before this writing, VET’s price was $0.049. But an hour later, the value of the token pumped 5.65% to $0.052 at press time.
VET Reacts Well
This climb implied that the token was reacting positively to the development. According to the 4-hour VET/USD chart, bulls solidly held support at $0.047. This support fueled the 11.33% increase which drove the token to $0.053. If bears fail to halt the bullish momentum, VET could test the $0.060 psychological resistance.
Indications from the Awesome Oscillator (AO) also supported this forecast. Previously, the AO displayed red bars, suggesting likely downward momentum. But as of this writing, a green histogram bar appeared.
The Next Target Could Liquidate Bears
If the green bars continue to appear, then VET’s price could rise more than it has in the last 24 hours. However, it was a different story on the Money Flow Index (MFI) side. At press time, the MFI reading had decreased from what it was on February 27.
An increasing MFI would have suggested a rise in capital flow. It would have also been a sign of buying pressure which could trigger a higher price for VET.
Since the MFI reading fell, it implied that liquidity flowing into VET had decreased. Should the reading continue to fall, the price of the token might pull back.
In a highly bearish case, VET’s price could retrace to $0.040. But that would only occur if selling pressure increases and buyers decide to take a step back. Otherwise, the value of the token could continue to increase.
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