The VeChain price is under intense pressure as its volume declines. VET is trading at $0.0856, which is an important support level. This price is also about 45% below the highest level in September. It has a total market capitalisation of more than $5.5 billion, making it the 29th biggest cryptocurrency project in the world. At its peak, VeChain was among the top 20 biggest digital currencies.
Why is VeChain dropping?
The VeChain price is dropping mostly because of the overall weakness in the cryptocurrencies market. Indeed, a quick look at the data shows that most cryptocurrencies, including Bitcoin, Ethereum, and Ripple have all declined substantially in the past 24 hours. Bitcoin is trading at $41,828, which is substantially below this month’s high of more than $50,000.
At the same time, data compiled by CoinMarketCap shows that the total market cap of al cryptocurrencies declined by more than 5% in the past 24 hours. Meanwhile, this decline also coincides with the overall decline of equities. In Europe, the DAX and FTSE 100 index have dropped by more than 0.80% while in the US, futures tied to the Dow Jones and S&P 500 index have fallen by more than 0.50%.
VeChain Price Prediction
A closer look at the daily chart shows that the VET price is not doing well. Its price has crashed by more than 40% from its highest level in September. At the same time, this price is about 68% below the highest level this year.
Worse, the VeChain price has dropped below the 25-and 50-day moving averages (MA) while its volume has dropped. Multiple oscillators like the MACD and the Relative Strength Index (RSI) have moved below the neutral levels.
Therefore, the VET price will likely keep falling as bears target the next key support at $0.05, which is about 40% below the current level. This view will be invalidated if the price moves above the key resistance at $0.100.