- 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.
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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.
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