VeChain: Is It on the Verge of Massive Growth? – Forex Trading Articles

Asia continues to be at the forefront of blockchain development, and VeChain is one of the brightest crypto projects in the region. There are different opinions about where this particular altcoin is heading. Today we’ll be analyzing them and taking a deeper look into the project. Read on for a detailed analysis to see whether the VET price prediction shows a promising future.

What Is VeChain (VET)?

VeChain is a blockchain built to enhance supply chain management processes on the enterprise level. It uses a combination of physical tracking (IoT devices) and blockchain records to keep track of what happens at every stage. VeChain is a blockchain-based project for the supply chain management.

The project was founded in 2015 by the former CIO of Louis Vuitton China - Sunny Lu. His goal was to make sure products are handled correctly so that consumers can be sure of the product’s legitimacy. The project has grown to cover the following areas:

Anti-counterfeiting solution - With smart chips and a public ledger, each item is tracked to avoid duplication. This feature has found popularity among luxury brands.
Cold-chain logistics - Smart IoT sensors automatically send out essential info about transportation and storage to the blockchain. For example, to make sure the produce is fresh.
Clinical trial traceability - VeChain offers traceability of information from an early stage for studies conducted. This side project is implemented in a partnership with Bayer China.
Vehicle data collection - Cars already collect a significant and growing amount of data. Now, there is a tamper-proof way to record and store it.
Carbon contribution records - Companies can keep track of their CO2 emissions. As for consumers, they can be awarded special credits if they make environmentally conscious decisions and exchange them for goods or donations.

The movement of goods and services is structured around its utility token - VET. In fact, it has a two-token system, where one funds the projects and the other powers the blockchain.

VeChain uses a two-token system - one funds the projects and the other powers the blockchain. It has forged partnerships with DNV GL, PriceWaterhouseCoopers (PwC), National Research Consulting Center (NRCC), Yida China Holdings Limited, BitOcean, and many more.

Factors Driving VET’s Price

Some factors that affect the VET price are inherent to all crypto coins. These include supply and demand, regulations and legal matters, competition, and competition. But to delve into the matter deeper, we’ll cover factors that are the most influential on VET specifically.

Adoption of Users

VeChain isn’t aimed at an average consumer but rather at enterprises. This means that the prices aren't affected by how many users gravitate to it, unlike with BTC or ETH. Instead, its widespread adoption relies on partnerships and integrations. VeChain relies on partnerships and integrations.

For instance, VeChain is in contact with the Chinese government. Having good relations with the government, the coin has increasingly more positive prospects each year. Based on the CEO's own words, the implementation of its technology is likely to increase the price.

Moreover, the project has recently been given an endorsement from the Germany-based certification body. TÜV Saarland has recently accredited VeChain by conducting a strict audit on its services.

New Developments

We’ve briefly mentioned several areas that VeChain has ventured into. Some of the latest tools were food safety traceability, sustainability services for immutable proof of a green supply chain, and several more only in recent years.

Considering the flexibility of blockchain, VeChain can potentially be adapted for many other projects. With more and more developments, the VET’s relevancy is going to grow accordingly.

The solution can be adapted to many different projects.

Company News

This factor can affect the price both in positive and negative directions. For example, following a cyberattack in late 2019, VET was traded at $0.0059. On the other side, if VeChain announces a new partnership, like it was for the BMW group car mileage program, the prices start looking up.

Price of Bitcoin

Most altcoins have some sort of correlation with BTC’s performance. VET, in particular, has a positive correlation of 0.37. Meaning, if the Bitcoin’s price moves in an upward direction, the VET’s price also increases. Although it’s not an identical parallel, it’s something to always keep in mind. There is a 0.37 positive correlation between VET and BTC.

There have even been studies on short- and long-term interdependent relationships between Bitcoin and altcoins. So, if you’re thinking of trading or investing, it’s a good idea to look at the original cryptocurrency.

How Has VET Performed in the Past?

Time-wise, the project doesn’t go very far. VET was officially Main-net launched in 2018. However, Google Trends shows that prior to this event, there was already a splurge of interest in the project. Perhaps this is why the VET price was one of the highest that it’s ever been - $0.0193.

By December 2018, VeChain was doing poorly compared to their previous highs. However, the announcement of several partnerships and devotion to new projects has contributed to a long-term period of stability. However, it hung rather low in the $0.003-$0.007 range, as you can see from the chart.

There have been a few notable events that were positively reflected in the price. For example, in June 2019, Walmart China’s decision to work with VeChain incentivized the network. VET had a brief breakout from its price range with a $0.0095 at the peak.

Another notable event was in November 2019 ($0.0082). They showcased limited edition artworks powered by VeChain ToolChain in collaboration with CoinMarketCap.

VeChain’s Performance in 2020

The year has started off with a bearish market. A rather unremarkable price movement was until March 13th, 2020. At that time, VET reached its all-time low of $0.0016. Unsurprisingly, many industries also took a huge hit around that time. But what VeChain did differently is that they utilized their technology for benefit. The VeChain platform ensured that new KN95 masks imported from China were credible and reliable while working inseparably with production offices and facilities.

VET reached its all-time low of $0.0016 on March 13th, 2020.

After that, VET has been on the path of stable growth. The company was continually rolling out new projects and collaborations. In 2020, VeChain teamed up with Travala.com, the leading cryptocurrency-friendly travel booking platform. The partnership was formed around integrating VET as the payment option for over 2,200,000 hotels and homes worldwide.

Another aftermath of the COVID-19 crisis was the tool for infection prevention processes and measures powered by VeChain. VET broke its resistance at $0.0082, and buyers pushed the price even higher. These events led to August 9th, 2020, when VET reached its all-time high - $0.022917. VET’s all-time high was on August 9th, 2020 - $0.022917.

Unfortunately, after that, VET hasn’t been showing the same amount of growth. Currently, VeChain is consolidating just below its resistance of $0.002 and is trading at around $0.002 per coin.

By the end of 2020, VET has a market cap of $1,232,644,832, a daily trading volume of $456,063,188.94, and ranks 23rd on the CoinMarketCap.

Short-Term VeChain Price Prediction for 2021

Now, let’s proceed to the most exciting section of our article. What can we expect from VeChain’s price in the future? Trading Beats offers the following view of the VET price for 2021. As you’ll see, it’s a similar projection as it was with Wallet Investor for the first quarter of the year.

Here is why this could be true:

The recent company news has been very promising. In December 2020, the company rolled a solution for faster transaction confirmation.
The partnerships that VeChain has forged over the course of 2020 will have a massive effect on how the coin does in 2021 (medical, automobile, hospitality, and innovation sectors).
Amidst the pandemic, blockchain projects with clear benefits are expected to do that next year at an even faster pace. More and more companies are interested in participating in networks that address supply chain issues that arose in 2020.
China is thought to make the fastest digitalization progress in 2021. And VeChain has already entered the Chinese market and gained the government’s support. So, China’s “new infrastructure” national initiative may drive the VET price forward.

Expectations for VeChain in 2022

Considering the historical data, here is what the Wallet Investor thinks of VeChain all the way to early 2022. Let’s appeal to the Trading Beasts predictions once again. You’ll see that unlike with the 2021 VET forecast, there are more differences with the Wallet Investor’s opinion.

Below we’ve compiled a couple of explanations why it might be true:

By 2022, the total value of counterfeit goods will be $1.9-$2.8 trillion globally. In this regard, projects like VeChain will come in handy. Since VeChain was originally an anti-counterfeit tracking solution, the company has great potential to grow in this regard.
Blockchain spending in China is anticipated to rise over $1.5 billion. As mentioned before, VeChain already has a good standing in this region.

VeChain Price Forecast for 2023-2025

For the VeChain token price in 2023-2025, we’ve decided to head over to Digital Coin.

These numbers are very optimistic. Here are possible explanations:

We can’t deny the high levels of uncertainty about future global trade. A report on the Future of Supply Chain in 2025 shares that there will be a bigger emphasis on enhanced transparency. Blockchain is a breakthrough technology for the quality and scope of supply chain disclosure.
VeChain already participates in policy commitments to transition to low-carbon economies. Future changes are likely to accelerate the need for climate-smart supply chains.
Companies are likely to build on the lessons learned in well-worn sourcing locations, such as China, to develop smart supply chain models in emerging hubs.

We also found an interesting take from Gov Capital Investor Blog generated by deep learning algorithms.

VeChain Coin Price Prediction for 2030

If VET maintains its relevance, at least in some of the industries it’s currently involved in, it’ll still be around in 2030. There is a reason to believe that this blockchain will be one of the main backbones of the world's supply chains and economy. If it does happen, the price would be thousands of times higher than what it is now.

Technical Analysis of VET Price

Vechain is highly volatile. In this regard, you can barely find technical analysis by other traders or analysts that will prove to be reliable. That’s why you need to be equipped with technical analysis to make price predictions.

If you are a newbie, open a Libertex demo account. The demo account includes all real markets. Still, it allows traders to test new strategies, apply unknown indicators, and strengthen trading skills without losing funds.

As for the technical analysis, if you know how to deal with currencies or CFDs, it won’t be a challenge for you. You should always find the trend and define support/resistance levels. As the market suffers high volatility, you should check market movements on different timeframes to be sure you haven’t missed the key point. Candlestick and chart patterns are also for you to either find a reversal point or determine a trend continuation.

You should remember about technical indicators. The most popular are RSI, MACD, Stochastic, and Awesome Oscillator.

What Do Experts Think?

Let’s start off with an undeniably positive outlook from Michaël van de Poppe. He confirms our take on VET dependability on BTC. As the situation is looking up for BTC, it’s taking other altcoins along for the ride.

Coinliker has given the best-looking sources to predict the course of VET in the next 5 years. It envisions VeChain gaining as much as over 5,000% to its current price. Well, it’s not impossible considering the cryptomarket behavior.

Mind you, long-term predictions for relatively young projects are hard to nail down precisely. VeChain coin price predictions included. So, every figure you come across should be treated as a suggestion rather than guidance.

To break away from an overly optimistic, we have Coinswitch. Still, it’s a rather cheerful outlook, but it’s not promising sky-high results. Their experts shared that VeChain might reach $0.1 by 2025.

Should You Trade or Invest VeChain (VET)?

There is a never-ending battle between two schools of thought - trading and investing. Anyone can combine investing and trading, but one should not confuse the two.

Investing in VET means gearing up for the long-term. You can already see that VeChain is disrupting traditional systems (at the very least, enhancing them) and gaining mainstream adoption. This gives investors a reasonable basis to bet on the long-term potential of the coin.

Investing in VET means gearing up for the long-term.

VET investors aren’t concerned with its short-term price movements. However, it’s important to point out that the cryptocurrency market cycles are much shorter as compared to, let’s say, the stock markets. Meaning, you don’t need to forecast for an extremely extensive period in the future. Instead, expect both bull and bear markets with greater intensity.

Trading VET

Trading VET, on the other hand, is based on a short-term horizon. In many ways, this is the only reliable forecast option for cryptocurrency. The volatility of the cryptocurrency market and VET, in particular, can be a highly profitable endeavor for traders.

Trading VET is based on a short-term horizon. However, engaging in buying and selling in the short term requires much bigger involvement. Here, you can’t just purchase coins and let them be. You’ll need to learn a great deal of information and devote sufficient time to it. Fundamental analysis alone won’t suffice. Still, the end result may be worth it and more.

Finding the Balance

Both approaches have pros and cons. When you invest, it can potentially bring steady profits in the long run. But a sharp decline may end badly for the investor. Considering the uncertainty of crypto in general and VET, it’s very much a possibility.

Trading VET has a significant advantage over investing. Traders can potentially make money from both upward- and downward-trending markets. Gains from the bull market are made the same as with investing - buying low and selling high. However, traders can also short-sell coins. This opens up more opportunities for possible profits.

Potentially, traders can profit from both upward- and downward-trending markets.

As you have seen in our analysis, VET occasionally makes very sharp price movements. To capitalize on these short-term changes, you can trade VeChain by using CFD. What’s more, you can start your trading journey risk-free with a Libertex demo account. You can capitalize on these short-term changes by trading CFDs.

Conclusion

We can’t compare VeChain’s future with the crystal clear potential of top cryptocurrencies (Bitcoin, Ethereum, EOS, Ripple, and Litecoin). As a business solution, it has undeniable profits, especially in the changing conditions for supply chain management.

VeChain is already in many luxury goods stores, food/drug companies, and logistics companies. We expect the tech to infiltrate more and more businesses down the line.

All the VeChain price predictions we’ve examined are predominantly positive. But it’s important to stay sensible and not go all-in at these uncertain times. Considering the current price, even growing by 5,000% would make the VET value less than $0.5. So, take the time to weigh all opinions and come back with your own decision. Make sure to practice in the meantime!

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FAQ

Rounding up this article, we’ll cover some essential questions about VeChain.

What Will VeChain Be Worth in 2021?

The majority of forecasts are positive, although to different extents. The lower projected price is around $0.019-$0.025, and the upper edge could be close to $0.03-$0.05. Considering the current price, there could be a growth of up to 400%.

Is VeChain Worth Investing in 2020?

So far, it’s behaving just like experts predicted - it fell to $0.017 as of December 2020. But after that, the coin is expected to rise. By investing now, you can see a good return in the future, especially as a long-term investment. But if you’re counting on substantial gains, this pick isn’t the best.

Does VeChain Have a Future?

VET has lots of advantages on its side: secured partnerships, an experienced team, and diverse blockchain-based solutions. However, we should mention that with such high competition and the uncertainty of entering new arenas, VeChain has a lot to work on. Still, the bullish predictions for the next 5 years are painting a good picture.

How Much Will VeChain Be Worth in 5 Years?

The goal is that it needs to provide complete integration of the blockchain-based platform with the actual business world. If the strategic partnerships and new endeavors work out, VeChain could be worth $0.07-$0.1.

Will VeChain’s Price Go Up?

The overall sentiment in the trading community, as well as among experts, is bullish. Although some opinions are less than optimistic, the price is very likely to go up considering the project’s aspirations. However, the growth won’t be outrageous - certainly, not like it was with BTC.

Can VET Hit $10?

Compared to the current price, VeChain would need to grow as much as 58,000%. It’s not impossible, definitely not in the near future. It may even take decades unless something unexpected happens.

Can VeChain Reach $100?

At this point, it doesn’t seem feasible. If it hits $1, it’ll still be good news and a substantial leap forward. So, let’s have reasonable expectations and count on the bullish trend to continue towards $1.

Is VeChain a Good Buy?

We can’t say that the VeChain investment is certainly going to bring profits. However, based on our analysis and the experts’ opinions, it can be a good buy for the long-term. Short-term price fluctuations aren’t vast enough for a significant profit. But in the years to come, it can reach some heights.