Vechain has been a significant investment in 2020-2021 with its 5,000% gains. This begs the question: Is Vechain a good investment in 2021? Are you late for the party?
Vechain might be a good investment, with an almost 9:1 risk/reward ratio better than Bitcoin or Ethereum. The fundamentals are solid as well – they have great tech and a strong team with many real-world use cases.
Vechain As An Investment In 2021
Vechain has been experiencing a rapid rise in the past few months. At one point, its price increased up to 2000%. This indicates that Vechain is currently a good investment.
USD vs. Vechain
The chart below indicates the USD price of the Vechain.
The current chart can tell us a little about where we are heading, but it does give some insight into the risk of investing in Vechain. The red horizontal lines you see indicate support levels for short-mid term investments.
The first support level for Vechain is at $0.14, the one in the middle around $0.1, and the bottom one should be close to about $0.06.
However, we must remember anything could happen with cryptos, so these are just predictions based on current market conditions/sentiment – they’re not 100% set in stone!
To summarize, we can expect to see Vechain hit a 65% crash in the short-mid term. This would put us at $0.06.
To analyze the current risk, you should divide $0.06 by the current price.
Risk = $0.06/current price
If you intend to enter the market, it is advisable to hold on for some weeks for the price to settle. However, please keep checking the price because it is subject to changes.
Vechain / BTC
The BTC price of Vechain is shown in this chart. If this trend is going up, Vechain is outperforming Bitcoin, and if it goes down, it indicates a weaker performance than Bitcoin.
The horizontal line is the (Long-term) resistance line we flipped into support this week – a major sign of bullishness.
The red arrow highlights where we got rejected, pushing us down. This week though, as support, the green arrow shows that it pushed back up again.
Many bearish investors are hoping to see this line broken, but if we manage to stay above it and have a weekly close above it, it would confirm the support level.
If Vechain manages to stay put against Bitcoin and maintain its position above the support line for another week or two, it will prove to be a good investment in 2021.
Vechain / ETH
The chart indicates the ETH price of Vechain. If it moves up, this means that Vechain is outperforming Ethereum; if it goes down, this indicates that VeChain is performing poorly compared to Ethereum in terms of value and market capitalization.
Let’s deeply analyze this chart. It speaks more than the previous two.
Best Possible Scenarios
The best possible scenario for Vechain in 2021 is that they reach the green line, resulting in a price of 0.000155 ETH by December 31st.
In order to get the USD price, we only need to multiply 0.000155 with $8000 at the end of this year: 0.000155 * $8000 = $1.24.
Vechain might reach $1.24 in 2021, based on the chart analysis that puts it at the top of its trend by year-end. However, if this prediction is accurate, Vechain will rise from #30 to compete with Ethereum and Bitcoin as one of the three largest cryptocurrencies.
It’s also worth noting that there are several other less bullish predictions for 2020 available, so consider those before making your decision.
Worse Case Scenario
Vechain may experience a price slump by 2021 to reach 0.00001738 ETH, but it will still have an upward trend in the long term.
Let’s analyze what it would be in USD: 0.0001738 * $8000 = $0.139
However, if Vechain follows its current pattern, its price could fall to $0.139 by 2021.
The most level-headed case
The Ve chain price seems to have a home in the blue channel, spending time there on its way up and down.
Throughout 2021, we’re likely to see Ethereum oscillate between 0.0000511 and 0.00007 ETH if this channel holds:
Let’s calculate the USD equivalents:
0.0000511 *$8000 = $0.4
0.00007 * $8000 = $0.56
In 2021, we can expect a Ve chain to be somewhere between $0.4 and 0.56 if it stays in the blue channel as long as possible.
Conclusion
The best possible outcome for investment in Ve chain is $1.24. And the worst-case scenario will cost less than a dollar. This gives a very favorable risk/reward ratio that we can use to analyze whether or not our money would be well spent by betting on it as early as 2021.
To calculate the risk/reward ratio, you must divide your best and worst predicted outcomes with the current price. Then divide those two answers:
For instance,
As I’m writing this, the Vechain price is $0.18, giving us a risk/reward ratio equal to:
Risk = $0.139 / $0.18 = 0.772
Reward: $1.24 / $0.18 = 6.88
Risk / Reward Ratio: 6.88 : 0.772 = 8.92 : 1
If you are looking to invest in 2021, Ve chain is an excellent choice. The potential reward of investing in it outweighs any risk by 8%, with a 28% chance that your investment will see gains over the short term.