The Vechain price is grappling with a significant long-term support level, suggesting a big move could be imminent.
VeChain (VET) has lost around half its value in the last month and is trading at a 70% discount from its all-time high. Subsequently, the supply chain crypto’s market cap, once close to $17 billion, has dropped to $5.5b, ranking VET the 31st most valuable crypto behind FTX Token. VeChain is suffering the same fate as most of the market. In recent weeks, investors have pulled back from cryptocurrencies on worries the Fed will bring forward the Taper timeline, causing risk-assets to correct lower.
Subsequently, many assets have succumbed to profit-taking as investors seek the safety of cash until a straightforward narrative emerges. However, the VeChain price is underperforming the broader market at the moment. Furthermore, if VET breaks down from its long-term uptrend, long liquidation could force the price much lower.
VET Price Forecast
The daily chart shows the VeeChain price is on track for a second consecutive daily close below the rising trend at $0.864. In my opinion, a close below the trend confirms the break and should attract selling. In that event, the July low of $0.556 (35% below the current price) looks like an achievable downside target.
However, In my opinion, a close above $0.864 would be constructive, targeting trend resistance at $0.106. On that basis, today’s price action could be pivotal for Vechain. Therefore, I am on the sidelines, with an open mind until the close of play.
VeChain Price Chart (daily)
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