The VeChain price has erased some of the gains it made earlier this week. The VET coin is trading at $0.083, which is about 10% below the highest level this week. It has a market valuation of more than $5.4 billion and is the 22nd coin in the world.
VeChain July review
Like all cryptocurrencies, VeChain had a mixed July. The coin initially declined by more than 37% and reached a low of $0.056 on July 21st. Most of these declines happened as the number of Covid-19 cases jumped. The price then bounced back by about 50% to the current $0.0836.
The rebound happened as investors saw the positive side of the Delta variant. For one, as cases rose, it increased the probability that more countries will move to lockdowns. As a result, central banks will shift their monetary policy from hawkish to dovish. Indeed, the Federal Reserve decided to leave its interest rate decision and quantitative easing policies unchanged. It also signalled that it will not tweak its interest rates in the near term.
The VeChain price is declining today as part of the overall cryptocurrency sell-off. Most notably, Bitcoin has moved below the important support at $40,000. This sends a signal that there is still fear about the coins. The weakness is also associated with the fact that the US is considering new cryptocurrency taxes in a bid to raise $30 billion for its infrastructure package.
VeChain price August prediction
The four-hour chart shows that the VET price has bounced back in the past few days. Along the way, it has formed an inverted head and shoulders pattern, which is usually a bullish sign. It is now forming the right shoulder of this pattern. Also, it is between the 25-day and 50-day moving averages. It also seems like it has formed what looks like a cup and handle pattern.
Therefore, there is a possibility that the coin will bounce back in August. If this happens, the next key level to watch will be $0.150, which is about 25% above the current level. On the flip side, a drop below $0.0784 will invalidate this view.