VeChain Likely Getting Rejected at Key Level — Price Analysis

  • Short term trend: Increasingly sideways consolidation
  • Long term trend: Uptrend in question, being rejected

The supply chain crypto VeChain (VET) has been making a comeback in the last month, along with a few other mid-cap altcoins, after bottoming out during September. VET has already done a 200% run on the Bitcoin chart, and is now trying to punch its way through a critical inflection level – but so far, it looks unlikely to do this.

Starting with the 3-day VET/BTC chart (VET had a rebrand in 2018, so this is not exactly the full chart), we see that the altcoin has so far been rejected near the critical level above 100 satoshis. If the VET uptrend is to continue, this level will have to be taken out with good conviction.

Rejected at key levelVET chart by TradingView

Zooming into this area a bit more, to the daily, we see that there are few signs that this is likely to happen. First of all, we see a prominent bearish divergence between the price highs. The histogram is also taking a beating, expanding hard to the downside.

Clear bearish divergenceVET chart by TradingView

What’s more, the 21 EMA looks ready to give way; but we can’t call this until the daily candle closes, which is not for several hours. If it does close above, we are fairly likely to see another bounce back up to the 100 satoshi area. There is a counter-argument here, which is that the volume spikes on the respective price peaks are higher; there was thus no flagging in volume during the price runup.

Finally, on the daily VET/USDT, we see nearly the same chart, but instead taking the form of a double top. Here, the 21 EMA is really in trouble, although the breach is on quite low volume and could perhaps end up holding.

21 EMA breakingVET chart by TradingView

Again, the histogram has taken a violent expansion to the downside. From here, it would seem prudent to wait for a test and hold of the 55 EMA.

Several mid-cap altcoins have surged and ebbed in the past weeks. MATIC has been brutally rejected today, putting a likely end to its uptrend. We should be on the lookout to see if the wave of surges spreads to other coins, or just ends.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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Binance Futures Launching Perpetual Contract for QTUM

On Wednesday (February 19), digital asset exchange Binance announced that its futures trading platform, Binance Futures, which went live in September 2019, is launching a perpetual contract for QTUM (currently the 34th most valuable cryptoasset by reported market cap).

Here is how Binance Info describes QTUM:

"Qtum is an open source Blockchain project that is developed by the Singapore-based Qtum Foundation.

"Qtum is a hybrid blockchain application platform.

"Qtum’s core technology combines a fork of bitcoin core, an Account Abstraction Layer allowing for multiple Virtual Machines including the Ethereum Virtual Machine (EVM) and Proof-of-Stake consensus aimed at tackling industry use cases.

"We believe this will allow Smart Contracts and Decentralized Applications to run on a familiar foundation while offering a robust environment for developers.

"The underlying technology uses an 'Account Abstract Layer', which acts as a bridge between the EVM and the Unspent Transaction Output model of Bitcoin Core. There will be Oracles and Datafeed functionality, allowing developers to create Smart Contracts built around trusted sources of information."

Binance Futures' new product is being launched at 08:00 (UTC) on 20 February 2020.

According to Binance's announcement, "to prevent market manipulation, Binance will implement a pricing limit of ±1% on the mark price within the first 30 minutes after trading starts."

Also, it is worth keeping in mind that, as with the NEO/USDT perpetual contract, which was announced last Sunday (February 16), "perpetual contracts on Binance Futures are similar to the trading pairs on the spot market," and they are "priced and settled in the same manner."

Binance Futures users will be able to choose between 1x and 50x leverage.

Here are some of the main specifications for the contract:

  • Base Asset: QTUM
  • Quote Asset: USDT
  • Settlement Asset: USDT
  • Contract Unit: 1 QTUM
  • Tick Size: 0.001
  • Minimum Contract Qunatity: 0.1
  • Maximum Contract Quantity: 1 million
  • Base Initial Margin Rate: 2.00%
  • Base Maintennce Margin Rate: 1.00%
  • Liquidation Fee: 0.5%


Featured Image Courtesy of Binance