In this article I will be explaining why VeChain has a high probability of increasing by a significant percentage during June. Before I dive into the article I just want to mention that this is not financial advice, just my opinion from my own research.
First things first, the bad news:
In order for VeChain to move a significant amount, the market cap will either need to be increasing or remain flat.
Investing and trading are all about probabilities, and at the moment the probabilities are weighted towards the overall market cap increasing in June.
- Over the past 5 years June has never has a negative change in terms of market cap. The average change is around 17% If this trend was to continue we would see the market cap climbing back near the 400 billion level.
- The ‘6’ trend. For the past 5 months the market has alternated between bullish and bearish roughly near the 6th of every month. If this trend was to continue then Bitcoin (and therefore the market) would climb back up near the 9K levels in June — which coincides with a market cap of above 400 billion.
The image below illustrates this trend:
(this was a screenshot from my Market Analysis here: https://www.youtube.com/watch?v=vujkiCbuNsk&)
- Bitcoin bounced off of the lower trend line of this compression pattern, it should now start the next leg up towards the 9K levels (the video I linked goes into much greater detail).
There are of course many reasons why the market could fall over the next month, however I am giving my personal opinion as to why I believe the probabilities are weighed in the bull’s favour rather than the bears (only slightly though).
Ok, so now we understand that this move will only happen if the market cap increases, why Vechain?
Here’s a quick overview of what VeChain is:
VeChain focuses on leveraging blockchain technology to build trust-free and distributed business ecosystems, which are self-circulating and scalable. VeChain are also introduction dividends which will attract many investors.
VeChain offer solutions for: Cold Chain Logistics, Automobile, Medical and Healthcare and Luxury and Fashion. These are all multibillion dollar industries primed for disruption.
VeChain are combining blockchain technology with tiny microchips that can validate the authenticity of a product, this will kill fraud, which costs the global economy almost 1 Trillion USD per year.
This is revolutionary and will further enhance globalisation and consumer trust in foreign markets.
VeChain have one of the largest teams compared to most cryptocurrency projects. They also have a substantial amount of partnerships with some well-known companies such as Renault Group, PricewaterhouseCoopers and are now working with divisions of BMW.
They have also spoken to the Deputy Prime Minister Of Belgium, and continue to seek out corporate partnerships.
That was just a very quick summary of who VeChain are and what they do.
Now the main reasons why I believe that they will out perform many coins during June 2018.
- Their Mainnet Launch is on the 30th June.
VeChain are moving to VeChain Thor at the end of June, which is not only their mainnet launch but a small rebranding too. There are already several applicants for running ICO’s on their mainnet and a few ERC-20 tokens are migrating to Vechain’s platform. For every VEN token you hold, you should receive a 1:100 ratio of the new tokens.
Historically (especially in a bull market) the price leading up to a mainnet launch increases a significant amount higher than the market average. This is mostly due to speculation, and the mainstream investors in the market tend to come in during the final few days before the event.
As we are far away from the mainnet launch, there is still plenty of time to get in before the ‘mass’ crypto investors start to get involved.
- Several Technical Developments due to be completed in June ahead of the mainnet launch.
Normally technical developments don’t have too much of an impact however it adds fuel to the fire.
- One Of VeChain’s leading advisers announced that ‘something big will happen, news will be released soon.’
Here’s the exact quote from Nan Xiaoning, one of Vechain’s advisers “Something Big Will Happen, some news will be released #ven #Ocean #mainnet #ecosystem”
Although I don’t like announcements of announcements, historically VeChain have actually delivered on the supposed ‘big’ news.
Again, announcements lead to interest which leads the crypto community to buy the rumour and sell the news. Which adds to the probability of a short-term price increase.
To conclude, there are a significant number of factors that all add to the probability of Vechain increasing a significant amount in June.
It’s a great project and can easily move higher in the market cap rankings.
Thanks for reading this article,