VeChain has seen a pretty decent year of trading in 2019, relative to the rest of the altcoin market, as it has increased by a total of 65% from the 2019 opening price! The cryptocurrency had started the year off on a strong bullish run as it surged by 184% from the February low to the June 2019 high of around $0.01. 

After reaching this level of resistance, VeChain went on to reverse and dropped by a total of 70%, creating fresh 2019 low in October at the $0.003 level. However, after reaching this level fresh new low, things started to become very promising for all VeChain holders.

During November 2019, when all other cryptocurrencies started to plummet to fresh 2019 lows, VeChain bucked the trend of the entire market and started to surge! Since reaching the October low, VeChain has rebounded and increased by a whopping 125% to reach the current trading level of $0.0066 (as of December 2019).

VeChain is now looking very promising as 2020 approaches! The cryptocurrency has a wealth of opportunities to look forward to in 2020 as the partnerships they have developed start to flourish. Furthermore, as new enterprises realize they can make their supply chain more efficient and transparent, this will bring a new wave of partnerships helping to further spur the growth of VeChain.

For the reasons stated above, and more discussed below, I believe that VeChain Thor has the potential to surge by a total of 200% in 2020 to reach my target price of $0.02 at some point during the year.

In this article, I’ll firstly cover a range of topics that I believe will influence VET in reaching my $0.02 target during 2020 and then analyze VET on the long term weekly and daily charts to highlight some areas of resistance on the way toward the target.

So, What Is VeChain 

VeChain is a pretty complicated project as it differs from the traditional financial solutions that blockchains provide. Instead, VeChain is considered as a Blockchain-as-a-service (BaaS) platform that focuses on supply chain management and delivering Internet Of Things (IoT) solutions. 

Initially started in 2015 by Sunny Lu and Hay Zhang, their system combines tamper-proofs and distributed Ledger technology (DLT) to provide retailers and consumers the ability to see the authenticity and quality of their products along the entire lifecycle of the product.

Their focus on the supply chain will help to revolutionize the industry. The team intends to put the entire supply chain of products on the blockchain. This includes everything from the raw material stage to manufacturing, distribution, and logistics. At each stage in the supply chain, the user can be sure that the authenticity and quality of the product are in-line with their expectations as all of the information is logged on the blockchain in an immutable method.

How Does This Actually Work?

The act of logging the entire supply chain on an immutable blockchain will help to increase efficiency, transparency and reduce the cost for enterprises and governments in tracking their supply chains. VeChain has provided a platform, ToolChain, that allows enterprises and businesses to incorporate their product lifecycle onto the blockchain easily.

ToolChain allows tracking of everything from the inital allocation of the chips into the products all the way through production, manufacturing, transport, retail, consumer interaction, and aftersales. 

VeChain has created its own proprietary “chips” which can be incorporated into the product via NFC, RFID, or QR codes. At each stage in the product supply chain, the “chip” is scanned and any relevant information is automatically logged. These chips use the VeChain Identity technology (VID) that is produced using SHA256 hash functions to mark and track the product. 

To understand VeChain and it’s supply chain management tool in more detail, take a look at this great write up!

VeChain Builders 

In November, the VeChain team showcased a new feature on their website known as “VeChain Builders”. This project is designed to spur adoption for the VeChain ecosystem as it is a decided section on their website that allows users to explore blockchain solutions that will help their specific industry to reduce their “pain points”. The website targets any user that wishes to build solutions on top of the VeChain blockchain.

Development still going strong

Data from Santiment shows that the team over at VeChain have been constantly developing their platform with very little lapses in development! This is promising as it shows that the team is dedicated to constantly improving their infrastructure.

Real-World Partnerships Taking VeChain To The Next Level!

The biggest feature to spur growth in 2020 is the continued expansion of partnerships with VeChain. As VeChain is heavily related to industries using its product, the growth of partners using ToolChain will certainly help VeChain to increase in price.

We all know about VeChain’s magnificent partnership with BYD, the largest manufacturer of electric vehicles and batteries in China. This partnership is based on carbon emissions in which a carbon banking solution for their car models is integrated using VeChain’s automobile lifecycle management solution. The project rewards vehicle owners with carbon credits based on their driving performance and carbon reduction.

Another great partnership is with Walmart China. In June 2019, the team announced that they had partnered with Walmart China to develop a “food safety platform” in which customers can learn about the quality and freshness of products by scanning QR Codes on the products.

As these high-profile partnerships continue to mature it will help other enterprises to join the network as they see the benefits of using VeChain’s supply chain management solution. 

A great new partnership that you may not have heard of is the Pu’er Tea Traceability Platform. In November, the team had officially held a conference for the Yunnan Pu’er Tea Traceability Platform in which many Chinese government officials had attended. Firstly, It is VERY important to recognize the fact that China is welcoming VeChain with open arms as, typically, China tends to be not so friendly toward cryptocurrencies. Furthermore, VeChain is actually a Nationally Registered Blockchain Company based in China!

Back to Pu’er! Pu’er tea is a class of tea that is grown and processed in Yunnan. This tea is a very luxury consumable which is priced above $3,500 per kilogram! 

As this is such an expensive tea, it only makes sense to make sure the authenticity of the product is genuine. The VeChain team partnered with Mengku Rongshi (the leading brand for deluxe Pu’er tea) and Linova to co-develop the Yunnan Pu’er Tea Traceability Platform based on the CeChain ToolChain.

Each product will have a QR code or NFC chip incorporated to log the entire lifecycle of a tea-brick that will allow manufacturers, retailers, and consumers to verify the authenticity of the tea they are purchasing.

VeChain (VET) Price Analysis

LONG TERM - WEEKLY CHART

Taking a look at the long term weekly chart above, we can see the range-bound trading that VeChain has been trapped within for 2019. The boundaries consist of resistance at around $0.0085 with support at $0.00329. VeChain has been trading between these two levels for the entire period of 2019.

LONG TERM - DAILY CHART

What Has Been Going On?

Inspecting the daily chart, we can clearly see the VeChain surging during Q1 and Q2 of 2019 as it rises from the February low to reach the 2019 high in June 2019. We can see that VeChain was stopped by resistance provided by the long term bearish .382 Fibonacci Retracement level, priced at $0.00957 in June 2019. 

After reaching this level of resistance, VeChain rolled over and dropped by a significant 73%, creating a fresh new low at the $0.003 level. However, after reaching this low, we can see that VeChain turned things around and started to surge SIGNIFICANTLY. The cryptocurrency reached as high as $0.008 in November before falling and dropping back into the support at $0.0049 (short term .618 Fibonacci Retracement).

VeChain has bounced from the support at $0.0049 and now trades at around $0.0066 (as of early-December 2019).

Are We Bullish Or Bearish (as of December 2019)?

As December starts to trade, we can firmly say that VeChain is in the process of creating a strong bullish trend. If we would like to see this trend continue into 2020, we MUST see VeChain rising and breaking above the resistance at $0.008.

For this market to be considered as bearish again, we would need to see VeChain falling beneath the support at $0.0049. 

Toward the downside, initial support is expected at $0.0055, where lies the 200-days EMA. Beneath this, support lies at $0.0049 (.618 Fib Retracement), $0.0040 (.786 Fib Retracement), and $0.0035 (.886 Fib Retracement).

Where Is The Resistance On The Way Up TO $0.02?

Alternatively, if the bullish pressure continues to push VeChain higher, an initial resistance is to be expected at $0.008 (November highs). Above this, resistance then lies at $0.0085 and at $0.00957 (long term bearish .382 Fibonacci Retracement level).

Beyond this, higher resistance lies at $0.010 and $0.0111 which is provided by the short term 1.414 and 1.618 Fibonacci Extension levels (drawn in green). The resistance around $0.0115 is further bolstered by the long term bearish .5 Fibonacci Retracement level.

If the bulls can continue beyond $0.012, higher resistance lies at $0.013 (purple 1.414 Fib Extension), $0.01344 (long term bearish .618 Fib Retracement), and $0.0144 (purple 1.618 Fib Extension).

If the buyers continue to drive VeChain above the $0.015 level, they will need to contest resistance at $0.0162 and $0.0178 (bearish .786 and .886 Fib Retracements, respectively), and break above resistance at $0.019 before being free to make an attempt at my 2020 target of $0.02.

Conclusion

Unlike the rest of the altcoin market, VeChain Thor has actually finished the last quarter of 2019 on a strong bullish note. Their continued partnerships and friendly relationship with the Chinese officials will help this project continue to surge by a total of 200% in 2020 to reach my target of $0.02.

To achieve this, VET will need to initially overcome resistance at $0.008 and $0.0095. If they continue above $0.01, strong resistance is located at $0.013, $0.016 and $0.01784. If the bulls can penetrate beyond these levels of resistance, the bulls will be free to make an attempt at my 2020 target.