VeChain has recently made headlines with the announcement of their plans to tokenize their node system. The new system will tokenize the status of all VeChain Nodes including the Economic Nodes and Economic X Nodes into their VIP 181 standardized “non-fungible” token.
The tokenization process is handled through an open source smart contract system that has been independently audited by a 3rd party firm called Slowmist to provide confidence in the codebase.
The aim of the tokenization is to benefit every party in the ecosystem from Node owners, non-Node owners and developers.
Node owners are now able to change the address of their nodes by transferring the VIP 181 token. Non-Node owners can potentially participate in Node ownership through the freshly-created Node exchange. Developers can develop dapps that utilize the smart contract tokenization system.
The VeChain team also announced the the update of their mobile wallet to version 1.3.0. The updated wallet will now aid in facilitating the new VIP 181 Node tokenization model through the additional features.
Another promising developing for Vechain is a brand new real world application of their supply chain management system through a partnership with a Japanese tea company. The system will allow consumers to verify the origin of their tea by scanning the NFC tag on the packaging.
The initial trial run is currently being tested with the first 100 products for the team to gather some data to streamline the system.
VeChain has seen a price increase totaling close to 3.99% over the past 24 hours of trading as the cryptocurrency now trades at a price of around $0.0047.
The market has seen a relatively steep price drop totaling 11% over the past 7 trading days and an even further price drop totaling over 55% over the past 30 trading days.
The VeChain cryptocurrency is now ranked in 22nd position and holds a $261 million market cap value.
Analyzing the VET/USD market from the short-term perspective above, we can clearly observe the serious price drop seen within the market during November 2018 as the market had fallen a total of 64% from high to low during the month.
VET/USD had approached a strong combined support level provided by a medium-term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.004368. This support level has, so far, managed to halt the bearish decline from pushing price action further lower.
The market has established a short term range and is trading sideways. Since reaching the level of support, VET/USD has traded within a range bound between $0.0057 and $0.0042.
If the bulls manage to push price action above the upper boundary of the range, they will run into immediate resistance at the psychological round number handle at $0.0060, followed by further resistance at the previous medium-term downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.006273.
If the buyers can continue to press even higher, then more resistance above can be located at the bearish .382 Fibonacci Retracement level (drawn in red) priced at $0.006875, followed by the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.007601.
If the sellers resume with their aggressive behavior seen during November 2018 and push price action below the lower boundary of the trading range at $0.0042, we can expect immediate further support below to be located at the short-term downside 1.414 Fibonacci Extension level (drawn in turquoise) priced at $0.003454, followed by further support at the $0.0030 round number level.
If the bears continue to cause VET/USD to penetrate below $0.0030, we can then expect more support beneath to be located at the short-term downside 1.618 Fibonacci Extension level (drawn in turquoise) priced at $0.002289.
The RSI is trading in the bearish territory at this moment in time, as it sits below the 50 handle.
However, the RSI has been approaching the 50 handle over the past few days which is an indication that the bears are losing control of the market momentum. If the RSI can continue to break above the 50 handle, we could see VET/USD breaking up above the aforementioned trading range.
Despite the turbulent market conditions across the entire industry, the VeChain team continues to make positive developments to roll out their supply chain management technology. This should bring some form of confidence to investors.
We will be closely watching watching the highlighted trading range to ascertain in which direction the market would head towards next.
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