VeChain Price Drops 29% Amid Bearish Pressure: Here’s What’s to Come

In the past three weeks, VeChain (VET) price fell by nearly 29%, most likely influenced by Bitcoin’s deterioration to $61500.

The entire crypto market was in a red sea, which also led its global market cap to plunge. The global market cap reached $2.2 Trillion, with a 4.5% 24-hour loss.

A look at VeChain Impotant Stats

VeChain (VET) TVL has declined to $534.7K over the last few months. This showed a decline in the project investment and the investors’ confidence.

Meanwhile, the token’s total supply was 85.9 Billion VET, of which 93.3% was circulating in the market (at press time). As per the rich list, VeChain’s top 10 holders held 41.43% of the total floating supply.

VeChain Token Total Derivatives Liquidation Chart | Source: Coinglass

The bearish dominance facilitated higher long liquidations. As of writing, the recorded long liquidation was worth $77.10K. On the other hand, only $1.78K shorts were liquidated in the last 24 hours.

Moreover, VeChain’s market cap dominance was 0.08%, which exhibited its strong presence. Also, the token’s market cap rank was 42, according to CoinMarketCap.

The VeChain token’s market cap witnessed a slight decline of 4%, which resulted in a market cap value of $1.986 Billion.

Recorded ATH & ATL in VeChain(VET)

According to TradingView, VeChain (VET) hit its all-time low (ATL) of $0.001495 in mid-March 2020. Since then, its current price has surged by 2000%.

On the other hand, the all-time high (ATH) for VET was $0.2664, recorded in mid-April 2021. The current market price (CMP) has dropped by nearly 90% compared to this peak.

VeChain Price Behaviour Over the Daily Chart

Over the last five months, VeChain (VET) has experienced consistent profit-taking, which resulted in a 56% decline in its price. Meanwhile, this downward trend has led to a spree of lower lows, followed by horizontal support levels.

A significant change in character level was noted at $0.033, marking a crucial point for market participants.

Despite challenges, VET price has pierced through bear sentiment for a brief rally from the $0.02395 support level. However, it could not sustain the higher level gains at $0.033, which led to a renewed bear pressure.

This failure to maintain the breakout has indicated the continued volatility in VET. Additionally, It has shown potential further downward pressure in its price in the near term.

Similarly, the price has traded below the 50-day and 200-day EMAs for longer. A death cross followed this in the EMA bands.

Moreover, the indicators depict the bearish angle, as the MACD and the signal line also developed a death cross. Both are signaling negativity. The histograms on the charts were negative at 0.00052, indicating a bearish sentiment.

The RSI fell below the 50-level and the 14-day SMA, remaining below these levels for a prolonged period at 35.38. Additionally, its support levels for VeChain (VET) are at $0.020 and $0.016. At the same time, resistance levels are at $0.033 and $0.043.

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