• VeChain price completes complex topping process and busts two strategically important support levels.
  • May 23 low of $0.65 is now in play as downside momentum accelerates across the cryptocurrency complex.
  • VET social media volume remains in a steady downtrend, but investors should be mindful of a double bottom pattern.

VeChain price is currently down over 20% and is one of the ten worst performing cryptocurrencies on the core coverage list. The break with the rounded top has been a powerful resolution for the unsettled price action that dominated VET over the last month. With no clear support until the May 23 low, the altcoin should endure further losses moving forward.

VeChain price down 70% from the April high

VeChain price offered warning signs, including the lack of strength on the Bitcoin price jump of over 30% and the lack of accumulation during the complex topping process. Hence, the lack of decisiveness and commitment under the weight of a declining 50-day simple moving average (SMA) was too much pressure for VET to overcome.

Today’s decline, now near 23% at the time of writing, is the largest decline since the massive May 19 washout of 34.92%. The collapse has crushed the anchored volume-weighted average price (anchored VWAP) at $0.088 and the strategically important 200-day SMA at $0.085 and put VeChain price on the course to at least test the May 23 low of $0.065. To be blunt, it is a race for the exits.

A potential scenario for VeChain price is to sweep below the May 23 low before establishing a base well above the May 19 low of $0.042. But, of course, it is important to remember that VET can experience big price pockets like on May 19, so a sweep below $0.042 and even the 78.8% Fibonacci retracement of the rally from the end of December 2020 at $0.039 is a scenario to be mindful of, mainly when it represents a 47% decline from the current price.

VET/USD daily chart

VET/USD daily chart

Of course, the cryptocurrency complex could reverse higher for many reasons or tweets, so if VeChain price does close above $0.100 on a daily basis, VET investors are free to consider new long positions; otherwise, target pilot buys against critical support or remain on the sidelines until a clear buy signal is defined.

It is tough to dispute the importance of social media volume in driving prices higher in the crypto market, particularly during blow-off tops like those witnessed in April and May.

The social volume of VET has been trending lower since the April VeChain price peak, but there are signs that the Santiment Social Volume metric may be bottoming as the 7-day average turned higher over the last couple of days.

The metric tends to press higher in times of rising prices and trend lower during times of weakness, so the current development could be green-shoot in the VET social volume metric chart. A push above the most recent high of 177 would trigger a double bottom for the 7-day average and may confirm a new period of social media interest.

VET Social Volume - Santiment

VET Social Volume - Santiment

VeChain price is in a price vacuum with no support of importance until $0.065. An acceleration of the selling will expose stubborn VET investors to considerable losses, even from the current price level. Therefore, to enhance short-term portfolio stability and ensure a profitable future, it is more advantageous to let the digital asset liquidate the last of the weak holders, giving clarity to the price structure.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory. Ethereum and Solana also retained gains of 7% and 4%, respectively, following the rate cut.

More Cryptocurrencies News
XRP sees bullish momentum following $123 million increase in open interest

XRP sees bullish momentum following $123 million increase in open interest

XRP exchange reserves in Binance and Upbit have declined by nearly $13 million. In the past three days, investors opened over $123 million worth of XRP positions. XRP needs to overcome key descending trendline resistance to stage a rally to $0.6640.

More Ripple News
Coinbase launches wrapped Bitcoin token on Solana network

Coinbase launches wrapped Bitcoin token on Solana network

Crypto exchange Coinbase announced on Thursday that it has launched its synthetic Bitcoin token, cbBTC token, on the Solana network, marking its first token issuance on the Layer-1 platform. The new token will allow users to stake Bitcoin on Solana and use it as lending collateral.

More Cryptocurrencies News
Solana Price Forecast: Investors stake $1.3B SOL amid November winning streak

Solana Price Forecast: Investors stake $1.3B SOL amid November winning streak

Buoyed by Donald Trump's victory at the polls, the global crypto market entered its third consecutive day on an uptrend on November 7, 2024. Amid the ongoing rally, Solana emerged one of the biggest gainers on Thursday, as demand for native memecoins further propelled market demand for SOL. 

More Solana News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP