The VeChain (VET) price has been pressured in the past few trading sessions. The price has dropped to $0.071, which is 14% below the weekend’s high of $0.0834. This brings its total market capitalisation to more than $16 billion.
The background: VeChain has been a great success story in the recent crypto rally. Its price has rallied from less than $500 million a year ago to more than $16 billion, making it the 19th biggest digital currency in the world. This price action is mostly because of the rising user base for its VeChain Thor blockchain network.
Companies like BMW, Walmart, LVMH, and Shanghai Gas are all using it. Also, we cannot rule out the fear of missing out and the low-interest-rate environment for helping the VeChain price rally.
VeChain Price Prediction
On Monday, I wrote that the VET price would likely rise to $0.08. This prediction was correct as the price rallied to $0.083, which was a record high. However, the uptrend ended there and the price has since then dropped.
Technically speaking, the recent weakness of VeChain price was expected. As you can see on the chart below, the $0.08 level was along the upper side of the ascending channel. And today, the current price of $0.071 is at the lower side of this channel.
The price has also crossed the 15-period and 25-period exponential moving averages (EMA), which is a sign that bears are prevailing.
Looking ahead, there are two potential scenarios at this stage. If the VeChain price moves below the lower ascending line, it will be a vindication for bears. This will see the price keep falling and retest the important support at $0.6400. The other scenario is where bulls return and push the price to the upper side of the channel at $0.08.
VET Price Chart