The VeChain price remains fatigued and lacking a directional catalyst. However, signs are emerging that VET may soon turn lower.
VeChain is last trading at $0.1058, lower by -$0.00096 (-0.90%)
VET is suffering a from investor apathy. The altcoin party at the start of the year has ground to a halt over the last month.
May’s crypto-carnage has, for now, sapped the energy from the Vechain price, and VET is facing the same problems as its digital asset peers.
At the start of 2021, the broader crypto space was rejuvenated as huge inflows of capital chased returns in a relatively small asset class.
In hindsight, the May crash, which wiped more than a trillion dollars from the ecosystem, was inevitable. Most altcoins had proven to be multi-bagger investments, and prices had run far ahead of the ‘fundamentals.’
VeChain gained over 1,500% in the first 14 weeks of the year, most of which came in the first 2 weeks of April.
In the month following VET’s 17th of April high of $0.2823, the coin lost close to 90% of its value. However, The lower valuations encouraged buyers, and a broad, although short-lived recovery ensued. By the early part of this month, VET had clawed back more than half of the losses and trading at $0.1551.
With the VeChain price now 30% lower in the last 2 weeks, the recovery is looking increasingly fragile.
VET Technical Outlook
A descending trendline at $0.1089 is an immediate resistance level. The price has been trading close to this barrier for the last 3 days. However, the momentum has remained sluggish, and the resistance resolute.
Furthermore, declining trading volumes indicate a lack of accumulation, and signaling buyers are not present at the current level.
The price does have some support around the May 29th $0.0920 low. Additionally, the 200-day moving average is present at $0.08390. Given the general malaise, I would expect this threshold to be soon tested.
A failure at the 200 DMA puts the 23rd of May swing low as the last line of defense ahead of a much deeper decline.
Of course, this negative thesis may prove incorrect. However, until interest returns the wider market, VET id likely to struggle.