Until a few weeks ago, in anticipation of POA 2.0 phase 1, the prices for vocational training rose independently of one another. On November 16, when the first phase of VeChain‘s Proof of Authority (PoA) 2.0 SURFACE consensus algorithm goes live, a similar bull run is expected for the market.
However, given the broader market weakness, VET had a few other plans in mind.
Different than expected
The latest upgrade to the consensus engine is designed to improve several aspects of network security and key operations. It will also make the blockchain more environmentally friendly. A week ago when this was first announced, the price of vocational training rose 15% in just 48 hours.
While the broader market is struggling, the upgrade is said to be a dramatic step forward for both network and price. However, since BTC drops by 10%, it also affects the vocational training price.
Accordingly, the cryptocurrency fell to 23rd place by market capitalization by almost 15% in the hours after the upgrade. In fact, VET has been closely tracking the price of Bitcoin since September and has fallen more than any time the crypto king waned.
After the upgrade was announced, VET started to go its own way. However, it couldn’t keep up when the broad market collapsed.
Indicators are still vague
While the near-term development is somewhat worrying, the asset’s volatility remains low at 1.03 as of press time. Meanwhile, the Sharpe ratio still has a higher value, making the asset relatively safer.
The source: Messari
Although the Sharpe ratio has been going down in the past few days, the indicator is still holding higher values at the time of writing. In addition, the entire stablecoin supply of more than $ 5 million in whale-owned assets is also well sustained at volatile prices. Simply put, the recent drop has not harmed whales in vocational training.
On the contrary, while the spot market looks relatively calm, the VET Perpetuals market bears the brunt of the price decline as the open interest has decreased by 7.31% in the past 24 hours. Additionally, on November 16, nearly $ 2.51 million in long positions was liquidated on a falling price.
The source: Coinlyze
However, the rally in the RSI in the lower timeframe suggests some hope for the price of VET. While the price still appears to be falling, a rebound from the all-important $ 0.11 level is imperative.
At press time, VET is trading at $ 0.136 after down 16% on the weekly chart. Higher societal expectations and retail inflows could push VET higher next week as long as the broader market stabilizes.
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According to AMBCrypto