VeChain (VET) soared by another 25 percent on Wednesday, embracing a highest price of $0.08657 and a market capitalization of nearly $55 billion.
The current accession comes as the second steep climb by VeChain this week, with VET having accomplished a similar, although slightly longer, spike of over 42 percent which began on Saturday.
The overall 62 percent growth recorded over the past 7 days has made VeChain one of the best performing coins of the week.
Why Is VET Rallying?
VeChain had been on a downtrend since early January, driving the price of the token to lows of $0.04001 on February 24th, at which point it started a slow recovery which it has since maintained.
However, the asset’s rebound had not been particularly impressive until its recent price spikes, which were highly correlated with multiple pieces of news from the VeChain project’s creators.
The VeChain Foundation is strengthening its presence and collaboration in Europe. According to VeChain co-founder Sunny Lu, VeChain is on the way to settling on a new technology team, including 100 developers, to support growing demand from European companies.
On Tuesday 29th, VeChain became a member of the Consumer Goods Forum (CGF), which brings together CEOs and senior management from over 400 retailers, manufacturers and relevant stakeholders from nearly 70 countries, boasting combined sales of $2.79 trillion.
A week ago, the VeChain foundation signed a partnership deal with the Draper University accelerator, which is expected to increase VeChain collaboration and adoption for future Web 3.0 projects and startups.
What to Expect
Following the positive developments and the massive VET price run, the general market sentiment toward VeChain is currently hovering between bullish and neutral.
At the time of writing, VeChain has crossed the support line of around $0.7900 and even approached the levels of the nearest resistance at around $0.8400.
If VET manages to close the daily candle above this line and maintain the bullish momentum, the market may catalyze further moves up towards at least $0.9500. On the other hand, the RSI 14-day indicator shows the asset to be “extreme overbought” territory, signaling that VET could experience correction in the nearest term.