VEE token, which serves as the native digital asset for the BLOCKv SmartNFT analytics platform, has witnessed a remarkable 100% increase in value over the past seven days. This surge has outpaced the growth of major cryptocurrencies, including Bitcoin [BTC], during the same time frame.
Despite the significant gains made within a short period, investors looking to capitalize on profits have started to take action. Currently, the altcoin has retraced by nearly 40%, but it has shown signs of stabilizing above the critical 50% Fibonacci retracement level. The question remains: Will this bullish momentum persist?
Profit-Taking Activity Impacts VEE Token
Typically, sharp uptrends like the one observed with VEE are often followed by corrections that tend to find support at common Fibonacci levels, such as 50% or 61.8%. In the case of VEE, the 50% Fib level overlapped with a bullish order block (acting as support) on the 6-hour chart, indicating a strong support zone.
Current data suggests that there was substantial demand at the 50% Fib level, although capital inflows remained average, as highlighted by the neutral readings on the Chaikin Money Flow (CMF) indicator. Additionally, the Relative Strength Index (RSI) was hovering around a pivotal level, with a potential rebound in the neutral territory signaling a probable recovery.
If key technical indicators regain traction, VEE could aim for a retest of $0.053 or even reach its recent high of $0.067. However, on the flip side, an extended pullback and profit-taking pressure may pull VEE towards the $0.03 or $0.02 levels.
Influential Whales Drive the Recent Rally
An examination of the driving forces behind the recent price surge uncovered whale activities as the main catalysts behind the impressive 100% spike. Notably, a significant transaction totalling $130k was recorded on 1 February, while another whale movement of nearly $150k occurred on 5 February, igniting the second wave of the rally and pushing VEE’s value up by 64% in a single day, eventually reaching a 160% increase by 10 February.
The surge in market interest during this rally provided the necessary momentum for VEE to climb higher on the price charts. Data from Santiment indicates a spike in social volume, suggesting heightened market enthusiasm across various social media platforms. However, the shift towards negative sentiment could potentially impede a strong recovery for VEE in the short term.
Disclaimer: The insights provided are based on personal observations and do not constitute financial, investment, or trading advice.