- VeChain has dropped over 5% after failing to break above the 50-day EMA, with the price now testing critical support at $0.02199.
- Weak derivatives data and declining trader interest suggest the bearish trend may continue toward $0.02000.
VeChain (VET) is facing renewed bearish pressure, with a sharp 5.17% intraday drop that threatens to invalidate recent gains. The price now hovers near the critical $0.02199 support level, with market indicators hinting at further downside.
ALSO READ:VeChain Launches Platform to Tokenise Everyday Human Actions with AI
VeChain Falls After Rejection at 50-Day EMA
After a short-lived rebound from last week’s three-day crash, VeChain rallied by over 16%, climbing from $0.02253 to $0.02630. However, the bullish streak ended abruptly when the price failed to breach the 50-day Exponential Moving Average (EMA), triggering a sudden sell-off.
This rejection, combined with falling 50-, 100-, and 200-day EMAs, signals that VET remains locked in a broader bearish trend. The daily chart also reflects mixed signals from the MACD and signal lines, suggesting increasing uncertainty and volatility in the short term.
Downside Pressure Builds Toward $0.02199 Support
The latest dip pushed VeChain below the $0.02471 support zone, with current trading levels around $0.02222. If sellers continue to dominate, VET could break below $0.02199—an event that would likely drag the price toward the psychological $0.02000 level or even $0.01974.
However, a rebound remains possible if bulls manage to defend the immediate support and push the price back above $0.02471. A close above this level could initiate another attempt to retest the 50-day EMA around $0.02609.
Derivatives Data Reflects Weak Trader Confidence
The derivatives market confirms the bearish outlook. Open interest in VET futures fell by 9.48% to $62.85 million, showing reduced participation and waning bullish sentiment. Long positions worth $419,000 were liquidated, dwarfing the $6,000 in short liquidations.
The long/short ratio has also dropped to 0.8744, revealing a clear tilt toward bearish bets. This decline in trader confidence increases the risk of further price losses in the coming days.
VeChain’s failure to reclaim the 50-day EMA and weak derivatives signals point to a potential breakdown below $0.02199. Unless buyers step in quickly, the price could test lower support near $0.02000.
ALSO READ:VeChain Launches Renaissance Update to Revolutionize Its Blockchain
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
