The VeChain price has crashed over the past few months, mirroring the performance of other cryptocurrencies; however, this could change in June as it undergoes its biggest upgrade since 2018. VET token was trading at $0.02418, down by over 70% from its highest point in November last year.
Renaissance Upgrade Ahead
The VeChain price has crashed over the past few months, with its attempt to bounce back in May meeting substantial resistance at $0.034.
June will be a big month for the VET token as it goes through the Renaissance upgrade. This upgrade aims to enhance the VechainThor blockchain network to boost its scalability, decentralization, economic sustainability, and interoperability.
The upgrade will take place in three phases known as Galactica, Hayabusa, and Intergalactic. Galactica will be the first to be implemented, with Hayabusa scheduled for the third and fourth quarters of the year. Intergalactic will likely happen in December.
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As part of the upgrade, VeChain will introduce a new staking model by reducing the traditional approach with a staking NFT system. In this approach, users will lock their tokens as collateral to mint the NFTs representing their contributions to network security and decentralization.
The upgrade will also deepen its compatibility with Ethereum Virtual Machine (EVM) standards, including those in the recent Pectra upgrade. It will also feature JSON-RPC support, enhancing interoperability with wallets, bridges, and on-chain applications.
The other key part of VeChain’s upgrade will be the dynamic gas fee support, where its fees will adjust based on network demand. Base fees will be burned, thereby reducing the supply of VET in circulation.
Therefore, there is a likelihood that the VeChain price will rise ahead of these upgrades. One reason is that investors may want to invest in the coin due to its higher staking rewards, which are expected to rise to 12%.
VeChain Price Analysis
The weekly chart shows that the VET price has been under pressure since 2022. It has moved slightly below the 50-week Exponential Moving Average (EMA).
The token has formed a large megaphone chart pattern, comprising two ascending and diverging trendlines. This pattern is one of the most bullish chart patterns.
The accumulation and distribution indicator is hovering at its highest point ever, a sign that the coin is in the accumulation phase of the Wyckoff Theory.
Therefore, the most likely outcome is that it bounces back in June. It will retest the highest point in November last year, up by 200% from the current level. Moving to this point will be part of the CD section of the XABCD harmonic pattern.
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