🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

VeChain Plunges Amidst Market Drop: VET Tests Crucial Level

Published 06/08/2024, 06:30 am
Updated 06/08/2024, 10:01 am
VeChain Plunges Amidst Market Drop: VET Tests Crucial Level
VET/USD
-

The News Crypto -

  • VeChain (VET) experiences a sharp 36% price decline, testing critical support at $0.020.
  • Technical indicators suggest bearish momentum, with potential for further downside.
  • Market sentiment and Bitcoin’s performance may dictate VET’s short-term trajectory.

VeChain (VET) finds itself caught in the throes of a market-wide downturn, grappling with a staggering 36% price erosion.

This dramatic devaluation has thrust the altcoin into a precarious position, teetering on the brink of a crucial support level at $0.020.

VeChain paints a bearish picture

VeChain’s price chart paints a grim picture, with a relentless succession of red candles forming a formidable downtrend. This bearish onslaught has effectively erased hopes of a double-bottom reversal pattern that bulls had pinned their hopes on at the $0.022 mark.

In the face of this selling pressure, VET has managed to limit its intraday losses to 11%, a small consolation as other digital assets reel from even steeper declines.

As trading volumes surge, all eyes are fixed on the psychologically important $0.020 level. This price point has emerged as a battleground between bulls and bears, with the daily candle’s lower wick hinting at a glimmer of buying interest.

However, the sustainability of this support remains in question as market participants brace for potential further volatility.

A deeper dive into VeChain’s technical indicators reveals a landscape dominated by bearish signals. The Relative Strength Index (RSI) has plummeted below the oversold threshold, registering a dismal reading of 22%.

This metric suggests that over three-quarters of recent price action has been skewed towards the downside, painting a bleak picture for short-term recovery prospects.

Adding to the technical woes, VeChain’s moving averages have aligned in a bearish formation. The 50-day and 100-day Exponential Moving Averages (EMAs) have executed a bearish crossover, a development that often presages prolonged downtrends.

This convergence of longer-term indicators reinforces the negative sentiment surrounding VET’s price action.

This content was originally published on The News Crypto

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.