VeChain price prediction: Is VET a good buy in December 2021?
The VeChain price had a mixed November. VET initially jumped by more than 45% between November 1 and 9th. Since then, the coin’s price crashed by as much as 45% as the bullish momentum waned. This happened even as the prices of other coins like Bitcoin, Ethereum, and Ripple retreated.
VET November review
VeChain is a platform that is powered by the VeChainThor blockchain. This is a proof-of-authority network that requires that nodes are given equal chances to publish new blocks and gain rewards. It is one of the leading Internet of Things (IoT) blockchain platforms.
Today, VeChain’s network is widely used by many companies, especially those in China. Some of the companies that it are LVMH and Walmart China. These companies uses its platform to improve supply chains using a decentralized method.
In November, VeChain announced that it had become an official member of the China Non-Staple Good Circulation Association (CNFCA). Analysts believe that more members of the national-level organization will embrace its technology. It also announced that Deadstock, an American company that provides authentification solutions was using its products.
Still, the momentum that existed a few months ago has waned. At its peak, VeChain was among the top-15 biggest cryptocurrency in the world. Today, VeChain’s market cap has crashed to about $7.9 billion and is currently the 26th biggest in the industry.
There are two main reasons for this. First, since VeChain is a primarily a Chinese blockchain network, its demand waned as the country started a crackdown on cryptocurrencies.
Second, in the past few months, investors have been fascinated about other forms of cryptocurrencies. Among the best performers were Ethereum-killers like Avalanche, Algorand, Solana, and Terra. Also, investors have been fascinated about metaverse coins like Sandbox, Decentraland, and Gala.
VeChain price prediction
The four-hour chart shows that the VET price soared to a high of about $0.1867 in November. Since then, the coin declined by about 61.8% Fibonacci retracement level. At the same time, the coin has dropped below the 25-day and 50-day moving averages. It has also moved below the neckline of the head and shoulders pattern.
Therefore, there is a likelihood that the VeChain price will drop for a while in December. This will see it drop and retest the 78.6% Fibonacci retracement level at $0.1040. The alternative scenario is where the coin resumes the bullish trend as the Santa Rally intensifies.