VeChain (VET) Token Price Analysis: Will VET Price Break the Downtrend and Reverse?

The total value locked for the VeChain token witnessed a strong decline over the last few months. At press time, it was valued at $509K. This showed a decline in

The total value locked for the VeChain (VET) token has witnessed a strong decline over the last few months. At the time of writing, the TVL for VET was valued at $509K, indicating a significant decrease in investors’ confidence in the token.

According to data from CoinGecko, VeChain was the 41st largest cryptocurrency in the global crypto market, with a market capitalization of $1.907 Billion. The value of traded volume for the VET token had declined by 7.5% over the last 24 hours.

Also, the token’s volume/market cap ratio was 0.83%, which resulted in very low liquidity. With an outstanding market presence, the token had a market cap dominance of 0.08%.

The supply inflation of the token was not defined, while the price was highly volatile, resulting in 9.7%. The sentiment for the token was neutral; the fear and greed index was at 26, reflecting fear among the traders.

The security score of the VeChain token was solid, resulting in 92.59 out of 100. It also belonged to the AA tier and had a global ranking of #25.

VET Token Derivatives Data Analysis

The open interest in the VeChain (VET) token declined by 3.9% to $29.24 Million in the last 24 hours, indicating a decrease in the token’s open positions. This could be attributed to traders closing their positions or reducing their leverage.

The token’s traded volume value had advanced by 9.3%, resulting in a traded value of $16.52M. This increase in trading activity showed a higher volume of buy and sell orders in the market.

Interestingly, more longs were liquidated over the last 24 hours, resulting in a value of $6.58K. This liquidation occurred when a trader's long position was forcibly closed at a loss due to a downward price movement. In this case, the losses incurred by traders who had bet on rising VET prices were realized.

VET Token Technical Analysis

VeChain (VET) has faced consistent selling pressure over the past five months, leading to a 55% price decline from its local top. This downtrend is visually depicted by a dynamic trendline, supported by horizontal levels, highlighting a bearish market sentiment.

A key level to watch is $0.033, which marks a critical point for market participants. Despite these challenges, VET recently broke out above a descending triangle pattern, signaling a potential reversal.

However, the token failed to sustain this breakout, leading to renewed profit-taking. This inability to hold higher levels indicates ongoing volatility and downward pressure.

Vechain Token Technical Indicator Analysis

The VET token has been trading below its 50-day and 200-day Exponential Moving Averages (EMAs) for an extended period, indicating a prolonged bearish trend. A death cross in the EMAs further reinforced this downward movement, a strong indicator of continued market weakness.

VET/USD Chart by TradingView

Adding to the bearish outlook, the MACD and the signal line have also formed a death cross. It is accompanied by both metrics declining into negative territory. The accompanying histograms on the chart have also been negative, underscoring the prevailing bearish sentiment.

The RSI further confirms this negative trend, having dropped below the 50-level and the 14-day Simple Moving Average (SMA). The RSI has remained below these levels for a considerable time, indicating sustained selling pressure.

Currently, the key support levels for VET are at $0.020 and $0.0230, while the resistance levels are at $0.0330 and $0.040. These levels will be critical in determining the token’s next move, with traders closely watching for potential breakouts or further declines.

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading

The above is the detailed content of VeChain (VET) Token Price Analysis: Will VET Price Break the Downtrend and Reverse?. For more information, please follow other related articles on the PHP Chinese website!