Until a few weeks ago, VeChain’s price appeared to be registering an independent rally in anticipation of POA 2.0 Phase 1. The market expected a similar price increase when VeChain’s first phase of the Proof of Authority (PoA) 2.0 SURFACE consensus algorithm went live on November 16th.
VET, however, had other plans as a result of the broader market’s weakness.
The most recent consensus mechanism upgrade is expected to enhance several aspects of network security and key operations. It will also make the blockchain less harmful to the environment. Notably, a week ago, when the same was only announced, VeChain’s price increased by 15% in just 48 hours.
Despite the fact that the overall market was looking bleak, the upgrade was supposed to be a game changer for both the network and the price. However, with the price of BTC falling by 10%, the same effect was felt by VET.
As a result, the crypto-asset dropped by nearly 15% in the hours following the upgrade. In fact, VET has closely tracked Bitcoin’s price since September, falling further whenever the king coin fell.
VET, on the other hand, had begun to chart its own course following the announcement of the upgrade. Unfortunately, it was unable to sustain the rally as the broader market fell.
Metrics are still gleaming.
Despite the fact that the altcoin’s short-term trajectory has been somewhat concerning, the asset’s volatility has remained low. At the time of publication, it had a reading of 1.03, while the Sharpe ratio was still higher, indicating that the asset was relatively safe.
While the Sharpe ratio has dropped in recent days, it is still higher at the time of writing. Furthermore, the asset’s stablecoin total supply, which is held by whales and totals more than $5 million USD, has held up well despite the choppy price action. Simply put, the recent price drop hasn’t frightened off VET whales. a cost for VET as well.
Furthermore, while the spot market appeared to be relatively calmer, VET’s perpetual market bore the brunt of the price drop, with VET’s OI falling by 7.31 percent in the last 24 hours. Furthermore, the altcoin saw nearly $2.51 million in longs liquidated on November 16th, despite its falling price.
Nonetheless, a recovery in the RSI on the lower timeframe offered some hope for the price of VET. While the price continued to fall, bouncing off the crucial $0.11-mark would be critical for the alt.
Vechain was trading at $0.14 at the time of writing, following a 16.09 percent weekly depreciation. Higher social anticipation and retail inflows could propel VET’s price higher in the coming week, assuming the broader market stabilizes.