Vechain’s VET Price Drops Sharply: What’s Next?

In a recent video by Checky Crypto on YouTube, VeChain’s price has demonstrated considerable volatility. Starting from a high on July 15, VeChain experienced a sharp decline of 44.18%, reaching a low on August 5. This downturn reflected broader market trends, as many cryptocurrencies faced similar challenges.

Following this low, VeChain showed signs of recovery. The price rose by 28.94% until it peaked again on August 11. This upswing offered a brief respite for investors. However, the relief was short-lived. Over the following days, VeChain encountered further losses, with an 8.9% drop occurring within just a few days. This was followed by an additional 4.69% decline, indicating persistent downward pressure.

Analyzing the one-hour time frame, there is clear resistance around critical technical markers like the 200-hourly EMA, the 50 EMA, and the 50 SMA. These indicators suggest a strong resistance level that VeChain struggles to overcome. The recent price actions involve significant liquidity extraction, with many leveraged positions being liquidated and spot buyers facing high entry costs.

As of August 12 and 13, VeChain’s price movements mirrored those of larger cryptos like Bitcoin, highlighting the crypto market’s interconnected nature. Despite some bullish indicators in shorter timeframes, such as the stochastic RSI not being overbought on the four-hour chart, overall trends suggest continued bearish sentiment.

The daily chart reinforces this outlook. The EMAs and SMAs align to indicate a bearish stance for the near future. The recent low of $1.890 on August 5, which has held so far, shows potential weakness. If this level breaks, it could trigger further declines, possibly reaching between $2.111 and $2.158 as per the pattern analysis of the ascending wedge, a typical bearish signal.

Over the past 24 hours, VeChain’s value has fluctuated significantly, recording a low of $0.02144 and a peak of $0.02225. At the time of writing, the VeChain price hovered at $0.02224, with a slight decrease of 0.22%, indicating a bearish trend. The cryptocurrency witnessed a 4.94% decline in value in the past week, as illustrated by the recent downtrend on its price chart.

The daily technical analysis of VeChain (VET) reveals a downtrend. The Relative Strength Index (RSI) shows a value slightly below the midline at 39.20, suggesting a lack of strong buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) currently indicates a bearish momentum, with the signal line (orange) remaining above the MACD line (blue).