- 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
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
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
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.