- VeChain (VET) struggles at $0.02 support, risking a drop to $0.017 amid global uncertainty.
- A break below $0.02 could signal the failure of bullish momentum for VeChain’s recovery.
- Bearish sentiment dominates as VeChain’s price faces rejection and shows signs of further decline.
VeChain (VET) has been unable to sustain its momentum and is currently hovering at the psychological support level of 0.02. Following a major retracement, the cryptocurrency is at risk of falling to the next important support level at $0.017.
With the market responding to continued international conflicts, traders are keen to observe VeChain market behaviour to see whether the market is turning around or declining further.
According to recent information provided by More Crypto Online, the $0.02 level is important to VeChain. In the case of the price falling below the support, the bullish construction may not finish, and the trend may lower. Nevertheless, if VeChain manages to break above the declining trendline, it could lead to a revival.
Source: X
VeChain Bearish Momentum Builds
Over the daily time period, the price of VET has been on a decreasing trend. Since the cryptocurrency reversed direction at the 38.2038 Fibonacci level at the $0.031 price level, it has remained trapped in a falling channel trendline.
VeChain has declined by 23% over the past month, indicating a loss of bullish momentum. VET This new development has been worrying for the near future.
At the moment, VeChain is trading at $0.021700 after the coin was rejected at its 24-hour high of $0.022100. The result is a long wick on the regular candle, usually an indication of negative pressure.
Momentum indicators are turning down, like the MACD and signal lines, which means that a bearish sentiment is on the rise. Additionally, RSI is in an oversold area between the oversold and middle lines, thus carrying a negative momentum.
Source: TradingView
Key Levels to Watch
Based on Fibonacci retracement levels, the next level of support to expect for VET is at $0.017, which was also witnessed on the April 7 low.
Nonetheless, if the price can surpass the existing resistance at $0.024, the possible reversal may restore VET to the level of $0.031. Traders closely monitor these levels because they dictate the cryptocurrency’s direction.
VeChain is not active in the derivatives market. CoinGlass data indicates an open interest increase of 0.04% to 62.36 million. The most remarkable is the data on liquidation.
Long positions that totaled $76,390 were liquidated versus a short position consisting of only $2,000. This implies that the majority of liquidations come through a bullish trade, and as such, the market is currently dominated by the bearish sentiment.
Source: Coinglass
The next price movement will determine VET’s future direction, as the $0.02 support level is at risk. The traders are searching for either a bounce at $0.017 or a breakout of the $0.024 resistance level, indicating a potential reversal of the trend. The coming days will play a critical role in defining the future of cryptocurrency.
Read More: XRP June Outlook: $2.19 Target Could Trigger $500M in Liquidations
