- VeChain is struggling to hold above the $0.020 support level, with bearish momentum and technical indicators suggesting a possible drop to $0.017.
- However, a breakout above $0.024 could spark a rebound toward the $0.031 resistance level.
VeChain Battles Support Amid Mounting Bearish Momentum
VeChain (VET) is treading a tightrope near the crucial $0.020 psychological support as bearish momentum builds across the broader crypto market. After a sharp 40% drop in just over a month, VET now faces a pivotal test: will bulls hold the line, or will bears drive the price down to $0.017?
Currently trading around $0.02099, VeChain faced intraday rejection at $0.02210, forming a long upper wick—a classic bearish signal. This price action follows a continued decline within a falling channel pattern, marking a steady reversal from the 38.2% Fibonacci retracement level at $0.031.
Indicators Flash Red: Downtrend May Deepen
Momentum indicators are reinforcing the bearish picture. The daily MACD and signal lines are both sinking further into negative territory, while the Relative Strength Index (RSI) hovers between neutral and oversold levels, suggesting limited bullish strength.
Technical analysis points to $0.017 as the next major support—VeChain’s year-to-date low from April 7. A break below this could trigger further losses. On the flip side, if bulls manage to push above the $0.024 resistance, it could set the stage for a rebound toward $0.031, challenging the upper boundary of the falling channel.
Derivatives Market Cools as Traders Wait and Watch
In the derivatives arena, traders are taking a cautious stance. CoinGlass data reveals a negligible 0.04% rise in open interest, now at $62.36 million. However, liquidation metrics tell a clearer story: $76,390 in long liquidations versus just $2,000 in shorts—evidence of a bearish grip on the market.
The long-to-short ratio sits at 0.9459, showing that short positions have overtaken bullish bets, further tilting the scales in favor of the bears.
VeChain at a Crossroads
With technical indicators and market sentiment aligning against VeChain, the $0.020 support level could be the last line of defense. A dip below may usher in a retest of $0.017, but any bullish momentum could spark a surprise recovery. Traders should brace for volatility as VET approaches this critical juncture.
