CryptoQuant recently revealed a significant bull signal. The analytics firm hinted at a possible trend reversal for VeChain [VET].
Indeed, the token underperformed expectations last week, with its price falling by more than 4%. VET was trading at $0.01555 at the time of publication, with a market capitalization of more than $1.2 billion.
VET’s Relative Strength Index (RSI) and stochastics were both oversold, increasing the likelihood of a price surge in the days ahead.
Furthermore, a look at VeChain’s daily chart revealed a few more positive market indicators that can provide the much-needed push for a price surge.
The Money Flow Index (MFI) was also oversold, indicating a bullish signal. VeChain’s Chaikin Money Flow (CMF) increased, increasing the likelihood of a trend reversal.
The Exponential Moving Average (EMA) Ribbon, on the other hand, revealed a bearish advantage in the market, as the 20-day EMA was lower than the 55-day EMA.
VeChain recently reached a significant milestone in its NFT ecosystem, which bodes well for the network. The total volume of VeChain’s VeSea platform has reached 100 million. According to Santiment data, VeChain’s total NFT trade count has also increased twice in the last week.
A few metrics appeared to be positive, indicating a better year’s end. VET, for example, has gained demand from the derivatives market as its Binance funding rate has remained high over the last week.
VET’s social volume increased as well, which could explain why VET was trending on Twitter on December 29, 2022. Nonetheless, VET’s development activity has slowed, which is generally a negative sign for any blockchain.
