VET
The VeChain price is crawling back after the relatively hawkish Federal Reserve interest rate decision. The VET token is trading at $0.100, which is about 19.60% above the lowest level this month. This brings its total market capitalization to more than $6.45 billion.
The main reason why the VeChain price is rallying is because of the relatively improved market sentiment after the Federal Reserve decision. While the Fed sounded relatively hawkish, investors believe that it was not hawkish enough. As a result, most assets like stocks, commodities, and cryptocurrencies have all rallied.
Second, the Evergrande crisis has eased substantially today. The company’s share price rocketed higher on Thursday as investors remained optimistic that the company will manage to restructure its finances. It has several options, including selling some of its existing properties.
The Evergrande issue is bullish for VeChain simply because of the close correlation between stocks and cryptocurrencies. Like we saw on Monday, digital currencies tumbled when the risks of the company rose substantially. So, what next for the token?
The three-hour chart shows that the VET price has rebounded substantially in the past few days. Along the way, the coin has moved above the 23.6% Fibonacci retracement level. It has also moved above the 25-day moving average and is attempting to move above the 50-day MA. The token has also formed a small head and shoulders pattern.
Therefore, the VeChain price will likely maintain the bullish trend as investors target the 50% retracement level at $0.1200, which is about 20% above the current level. On the flip side, a drop below the key support at $0.0900 will invalidate the bullish view.