- VET faces resistance at $0.02900, with $0.03000 as the next bullish target.
- VeChain’s tokenomics revamp links VTHO rewards to active VET staking.
- RSI at 47.85 signals neutral momentum, suggesting possible price consolidation.
VeChain (VET) has experienced a strong upward move, currently trading at $0.02896, reflecting a 10.65% increase in 24 hours. This surge aligns with positive market sentiment despite a declining trading volume of 28.74%.
The price action indicates higher highs and higher lows, signaling a potential bullish continuation. However, market momentum remains uncertain, as technical indicators suggest a neutral trend.
Support and Resistance Levels Indicating Market Strength
VET has key support levels at $0.02616, $0.02700, and $0.02550. The $0.02616 mark represents the daily low, providing a strong foundation against downside risks. If selling pressure intensifies, the price could retest this level or move towards the lower support at $0.02550. However, bullish traders will likely defend $0.02700, a psychological support zone.
On the resistance side, VET is approaching $0.02900, an immediate barrier. A break above this level could pave the way for a rally towards $0.03000, a critical psychological milestone. If momentum sustains, the price may reach $0.03200, an upper resistance based on previous price trends. Maintaining buyer interest at these levels is crucial for further upward movement.
Technical Indicators Suggest a Neutral Outlook
The Relative Strength Index (RSI) currently stands at 47.85, suggesting neither overbought nor oversold conditions. This indicates that VET may continue consolidating before a decisive move occurs.
The Moving Average Convergence Divergence (MACD) histogram shows weak momentum, with the signal line closely tracking the MACD line. This lack of divergence implies a period of indecision, making price direction uncertain.
VeChain’s Tokenomics Overhaul Strengthens Network Participation
VeChain has introduced a major shift in its tokenomics, aiming to enhance ecosystem engagement. Previously, VTHO, the gas token used for transactions, was generated at a fixed rate per VET, leading to excessive accumulation in inactive wallets. This system failed to incentivize active participation, particularly among validators securing the network.
The upgraded model now ties VTHO rewards to VET staking activity. Validators and delegators contributing to network security will receive proportionate rewards, reducing inflation by 72.2%. This ensures a more balanced distribution, preventing unnecessary accumulation in exchange-held wallets.
Additionally, staking opportunities now extend to NFTs, integrating digital assets into VeChain’s ecosystem. This expansion encourages long-term engagement, aligning incentives with network growth.
