VEE digital asset, the primary token of the BLOCKv SmartNFT analytics platform, witnessed an impressive 100% increase in its value within a span of seven days. This surge surpassed the performance of major cryptocurrencies like Bitcoin [BTC] during the same period.
Nevertheless, with a doubling in value in just a week, investors looking to capitalize on gains have started cashing out. Currently, the altcoin has retraced by approximately 40%, but it seems to have found stability above the crucial 50% Fibonacci retracement level. The question now arises: Will the upward trend persist?
Profit-Taking Impact on VEE Cryptocurrency
Typically, strong uptrends are often followed by pullbacks that tend to find support and initiate a rebound around the 50% or 61.8% Fibonacci levels. In the case of VEE, the 50% Fib level aligned with a bullish order block (acting as support) on the 6-hour chart, making it a significant support area.
Analysis shows that at present, there is notable demand at the 50% Fib level, as indicated by the lower candlestick wick. However, capital inflows remain moderate, depicted by the CMF (Chaikin Money Flow) hovering around neutral levels.
Furthermore, the RSI is positioned at a critical juncture, with a potential recovery effort only signaled by a bounce back from the neutral zone.
If key technical indicators gain momentum once more, VEE might aim for levels around $0.053 or even the recent peak of $0.067.
Conversely, an extended pullback and increased profit-taking could push VEE down to levels as low as $0.03 or $0.02.
Examination of Whales’ Influence on the Rally
Delving deeper into the catalysts of the recent surge, it was apparent that large investors, or ‘whales,’ were responsible for triggering the substantial 100% price pump. Notably, on February 1st, a significant transaction amounting to $130k was executed in VEE.
Analyzed through spikes in the data, another whale transaction worth close to $150k was observed on February 5th. This particular large-scale transaction catalyzed the second phase of the rally, resulting in a 64% spike in VEE’s price on that day alone, eventually reaching a 160% increase by February 10th.
Amidst the heightened market activity during the rally, VEE was fueled by the increased interest among traders and investors.
According to insights from Santiment, there was a surge in social media discussions related to VEE, indicating a rise in market engagement across various platforms. However, the weighted sentiment turned negative, which might impede a significant recovery for VEE in the short term.
Disclaimer: The views expressed in this article are personal opinions and do not constitute financial, investment, or trading advice.