VeChain (VET), a leading blockchain platform known for its supply chain and logistics solutions, has recently experienced a significant price movement. The cryptocurrency has broken below the critical support level of $0.03289, a development that signals the persistence of its ongoing downtrend.
This breaking of support is a bearish sign, indicating that there is still a lot of selling pressure and that more drops could be on the horizon. A number of causes, including general market conditions and particular difficulties facing the VeChain ecosystem, have contributed to the price decline of VET.
Currently, the price of VET is down by -0,61%, trading at about $0.03266, with a market capitalization of over $2.3 billion and a trading volume of over $88 million as of the time of writing. Although its market capitalization is down by 9.28%, its trading volume is up by 36.06% in the past day.
In this article, we are going to dive into what could be VET’s next price destination with the help of indicators.
VET Price Analysis Using The 100-Day SMA And RSI Indicator
The price of VET is currently trading below the 100-day Simple Moving Average (SMA) on the 4-hour chart, following a steep decline that saw it breach the $0.03289 support level. This break of this key level might signal a further decline in prices.
Also, given that the Relative Strength Index (RSI) line is trending below 50% after making a sharp drop below it, the RSI indicator indicates that the crypto asset might continue in its bearish direction.
An observation of the chart from the daily time frame reveals that VET is currently bearish and might continue to be bearish based on the drop in price on the previous day. In addition, the asset’s price is also trading below 1-Day SMA.
Lastly, the 1-Day RSI also confirms that the coin might continue in its bearish direction as the RSI line is trending below 50% making a move toward the oversold zone.
Prospects For VeChain’s Future
Based on price analysis and what the RSI indicator is suggesting, if the price of VeChain continues to decline, it might trigger a move toward the $0.03267 support level. If it breaks this level, it may even decline further to test the $0.01820 support level.
On the other hand, VeChain’s price will start to head toward the $0.03802 resistance level if it decides to move higher at this point. It will advance further to challenge the $0.04303 resistance level if this level is broken. Furthermore, should it break past this level, its price can increase even further to reach new heights.
Featured image from Adobe Stock, chart from Tradingview.com
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