VeChain Price Forecast: VET Eyes $0.08, ReSea Project Pays off

• A V-shaped recovery bolsters VeChain price into a 19% rally upwards.
• The partnership with DNV that helps prevent plastic from polluting rivers and oceans is making good progress.
• If VET remain below the 20-day SMA, the bullish narrative will be invalidated.

VeChain price has been on a free-fall since June 30 shedding over 68% towards the range low at $0.055. The appearance of a morning doji star candle on Wednesday saw VET start   a V-shaped recovery targeting areas beyond $0.08.

VeChain’s Partnership on ReSea Project Make Progress

VeChain partnered with DNV, a Danish company, on the ReSea Project which is aimed at cleaning rivers and oceans. The project which is expected to reduce plastic pollution uses VeChain’s blockchain platform to collect and monitor data. The stored data is validated by DNV for traceability and proof of impact.

According to the details of progress of the report, more than half a million kilograms of plastic had been recovered from polluted oceans and rivers between January and June 2021. This is impressive progress given that the work has just been going on for just six months.

The low-cost, easy-to-use and reliable VeChain blockchain platform ensures that the stored data is time-stamped and immutable. This voids the project of any false claims and helps track its progress.

This is a good step forward for VeChain as it aims at promoting digital ecosystems that help transition towards a circular economy.

Will The V-shaped Recovery Pattern Push VeChain Price Higher

VET price formed a V-shaped chart pattern on the 12-hour chart, indicating a sharp recovery. A V-shaped pattern is created when an asset falls significantly and then makes a sustained upswing. For example, VeChain price currently hovers around $0.0677 as bulls target highs beyond $0.08, representing approximately 19% rise.

If this pattern holds, it is expected that VET will rise sharpy before running into significant resistance at $0.069 and the 50-day SMA currently at $0.0764.

VeChain Price (VET/USD) 12-Hour Chart

The bullish narrative has been reinforced by a crypto signal from the Moving Average Convergence Divergence (MACD) indicator. This occurred when the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA. Note that the bullish momentum gain more traction as soon as the MACD crosses into the positive region.

The strength of the bullish momentum has been illustrated by the Relative Strength Index’s (RSI) sharp rise away from the oversold areas. A break above the midline will initiate more sell orders before overbought conditions come into play.

Therefore, closing the day above the significant hurdles at $0.069 and the 50-day SMA is crucial to pushing the VeChain price higher.

VET Could Go Lower

Realise that a daily closure below  the $0.069 and the 50-day SMA levels trigger another downswing. If this happens,  VeChain price could re-test the support at $0.048 and the May 19 low at $0.045.

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