VeChain has pulled back from a surge into mid-April but the project has potential after endorsements close to the Chinese government.
China Ties Boost VeChain Hopes
Investors hurt by the slump in VeChain can take heart from the news that ties the project to the Chinese government.
A recent report from the website ChainNews, described the Deputy Director of China’s Changing District, Pan Min, “repeatedly” praising VeChain. Other signs now point to Beijing utilizing Vechain (VET) to help with the development of China’s digital Yuan.
The support from the Chinese government is key because they have been cracking down on exchanges and could place further restrictions on currency-based projects in the future. Investors would be wise to seek out projects such as VeChain, which have an endorsement from policymakers in the country.
When will a Rebound Happen?
At the moment VeChain is following the price of Bitcoin and the general cryptocurrency market as it seeks to repair the damage from the recent price crash. The VET token saw a dramatic price surge into April and the correction is natural. Bullish investors should use that opportunity to buy the dip if they are confident that the China support will help the cause of VeChain.
Healthcare is Another Venture in China
VeChain has moved into another new sector with DNV and one of China’s most important Healthcare facilities, the Renji Hospital. The partnership has seen the launch of MyBaby, a blockchain-based service app for IVF treatments
The app allows hospitals to provide a better data management service and can help families to keep track of their babies’ development.In addition, the app has been created to become a useful instrument to reduce anxiety, depression, and the stress associated with this process.
With countries like China seeking to control the money supply with their own Central Bank Digital Currencies, it is important that projects have use cases outside of currency.
VET Technical Analysis
The price of VET has stumbled from the highs in mid-April above $0.2500. The coin then slumped to lows of $0.042. This is a key level fro VET because it marked the point of breakout in the price surge. If the coin can find support around this level then it could form an important low in the coin.
VETUSD Weekly Chart
VeChain Ecosystem Highlights
VeChain uses a unique two-token system (VET+VTHO) to separate the cost of using blockchain from market speculation. Due to the correlation with the blockchain resources, the cost is more predictable with the monitoring of the VTHO supply and demand. The foundation’s governance mechanism further stabilizes the cost and some have called the coin an “Ethereum Killer”.