VeChainannounced that after the project organization became the official layer-1 blockchain partner, it has established a great partnership with the UFC, as detailed in the news we informed you.
The five-year deal, worth over $100 million in total, did not have the desired effect on VeChain price and rose only 1.2% on the daily chart.
VeChain Price Analysis
VeChain price has actually struggled to determine its direction since the beginning of May. VET consolidated between $0.034 and $0.028, testing once in both directions.
After the announcement of the agreement with the UFC, there was no change in the desired direction in the asset price. In fact, at the time of writing, a small bearish divergence was also visible, which could lead to a retest of support at $0.028. VET is posting a recovery on the 4-hour chart, but momentum has been quite low.
According to the chart above, the Relative Strength Index created lower highs while the price created higher highs. This inequality generally results in a downward trend.
In terms of indicators, the Awesome Oscillator showed that the trend is currently more bearish. Bearish momentum is starting to rise which could lead to further corrections.
Chaikin Money Flow also showed a bearish trend meaning more money was flowing out of the ecosystem than money.
VeChain UFC deal It is largely productive for the future but is a development for the future and there is currently a lack of liquidity in the entire market. With Bitcoin depreciating in the market, there is also more dispersion among VET investors. In this volatile market, there is no accumulation and partnership announcements are not superfluous.
You can follow the current price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.