VeChain’s (VET-USD) price action could be positioned for an imminent breakout. From a technical analysis perspective, VET is trading against a trendline at $0.0361. However, a confirmed breakout above the trendline may not be enough to sustain VeChain higher.
Ideally, a daily close above that really ugly daily candlestick from April 30, which saw VET drop nearly -9%, would occur. So, assuming VeChain can close above the trendline and the April 30 candlesticks, would there be enough momentum to carry it higher? Let’s look at two of its oscillators.
The Composite Index is extremely flat, and the Detrended Price Oscillator hovers just below the zero line and moves nearly parallel to it. For bulls, these are the exact conditions they want to see.
Tokenizing the Fight
From a fundamental perspective, VeChain has a lot going for it. A few weeks ago, VeChain announced a new NFT project with the Ultimate Fighting Championship (UFC). They are tokenizing UFC fighters’ gloves to combat counterfeits and bolster memorabilia – killing two birds with one glove.
The deal, fueled by VeChain’s $100 million sponsorship agreement with the UFC since 2022, extends beyond typical sponsorship visibility. Fabio Konder, VeChain’s Activation Director, said the project was a natural progression from their existing high-profile collaborations with brands like Louis Vuitton and Walmart (NYSE: WMT).
A Technological Knockout
Konder pinpointed an opportunity to innovate amidst ongoing issues with the gloves used in the UFC—ranging from fighters breaking their hands to the risk of accidental eye pokes due to the ease of finger spreading. The newly designed gloves, set to debut at UFC 302, will capture detailed fight data and authenticate the gloves as non-fungible tokens (NFTs), ensuring authenticity and reducing counterfeits in the secondary market.
Is VeChain A Buy?
According to TipRanks’ Summary of Technical Indicators, VeChain is a Sell.
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