Can VET Hold the $0.02 Support Level?

• VeChain (VET) has plunged below a crucial support level as bearish sentiment dominates the market with unexpected liquidations. 
• However, an analyst still believes that the asset could stage a rebound to $1 and subsequently to $2.5 in the long term. 

VeChain (VET) is struggling to hold above its $0.022 psychological level as buyers’ efforts to resist an extensive fall below $0.021 are being threatened by the broad market liquidation. At the time of writing, VET was down by 1.4% in the last seven days. However, it was marginally pushing down with a daily drop of 5.72%.

Our market data also shows that this level of momentum has not been enough to overturn the monthly loss of 22% as its 24-hour trading volume falls by 5%. Currently, VET has a market cap of $1.87 billion, right behind Polygon (POL), which has a market cap of $1.99 billion.

Apart from the negative returns on its trading sessions, VET’s bearish trend has been confirmed by the various momentum indicators like MACD and signal lines. Its Relative Strength Index (RSI) is also showing a bearish position between the oversold and middle lines.

Looking at its demand in the derivative market, we found a 0.04% increase in the Open Interest (OI) to 62.36 million. Additionally, a total of $76,390 in long positions have been liquidated while $2,000 in short positions were also liquidated.

According to analysts, this implies that bearish sentiments currently dominate the market. Meanwhile, trends could change overnight based on historical data. In this case, a decisive move above the $0.022 level could see the asset reach the $0.031 level. A continuous decline could also see VET falling to $0.017.

Analysts Speak on VET

Among the several analysts who have frequently spoken on VET, Egrag Crypto has been one of the most consistent. As highlighted in our previous news brief, he believes that the asset could hit $1 in the long run. At the time of that report, the analyst hinted that the asset was entering the third wave of the Elliott Wave Structure. To validate this estimation, VET is expected to first secure the $0.1 level as discussed earlier.

I’ve applied the cloning technique to a previous cycle’s blue arrow pattern, and the current price action suggests that VET may be gearing up for some exciting moves…VET Triple Bottom: Cloning Pattern ($1.6). The pattern indicates a potential rise to 0.115c.

Later, Egrag Crypto also predicted that VET could continue to $2.5 as detailed in our last news piece. Basically, this explosive run could be fueled by the many jaw-dropping developments, including its dominance in the Real World Assets (RWA) sector. As mentioned in our recent publication, it has even earned a spot among the top five RWA integrations.

VeChain has also translated its sustainability practices to real life by recently organizing a cleaning exercise in Japan, as indicated in our earlier discussion.

Recommended for you: