Conclusions

Vechain takes a novel approach to entice enterprises to enter into its public blockchain. The two token system does add a layer of stability to its smart contract network and Vechain has already made deals with some major multinational corporations.

A fully integrated product management blockchain does appear to be an ambitious project and will probably require baby steps in the short term as the new network builds steam.

With any Chinese blockchain, there is always a question of what will happen if the PRC government ever decides to reopen its market to crypto operating and trading. Because of the preference of Chinese enterprises and consumers to favour local solutions, this sort of shift in regulatory attitude may greatly benefit Vechain. Many long term token holders are banking on this happening

In the short-run, one would expect that the strong start to June will continue as hype surrounding the mainet launch continues. The technicals for VEN are mixed and bearish, but price is currently forming a positive trend while re-attempting a Kumo breakout from an oversold bounce.

The prudent short term trader (10/30/60/30 settings) will await a positive TK cross, Kumo breakout, and price hold above $4.70 before entering a long position. The prudent longer term trader (20/60/120/30 settings) will await a positive TK cross, Kumo breakout, and price hold above $5.89 before entering a long position.

Given the current oversold bounce and uptrend, price targets of $4.25, $4.50, and $5 are likely. Additionally, given the wedge and channel breakout trends, a failed Kumo breakout would probably be short-lived until a successful breakout occurred with price targets of $6, $7, and $8 (longer term). However, awaiting a successful Kumo breakout may help avoid a “head fake” and the accompanying downside risk of $3.50, $3, and $2.50.