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VeChain ($VET) is holding near the $0.020 level amid bearish pressure. Will it break below $0.017 or bounce back toward $0.031?
With a minor pullback among top cryptocurrencies, VeChain is holding its ground at the $0.020 psychological mark. Struggling within a falling channel, it risks a potential drop to crucial support at $0.017.
$VET Price Analysis
On the daily chart, VeChain’s price trend reflects a decline forming a falling channel pattern as it reverses from the 38.20% Fibonacci level at $0.031. The declining bullish momentum has fueled a 40% drop in VeChain’s value in just over the past month.
At present, VeChain trades at approximately $0.02099 after facing rejection from its 24-hour high of $0.02210. This has resulted in a long wick formation on the intraday candle, signaling a potential downtrend.
Supporting the bearish outlook, the MACD and signal lines are trending downward within negative territory. Additionally, the daily RSI hovers between the oversold boundary and the midpoint, maintaining a bearish bias. Hence, momentum indicators project a bearish view for VeChain.
Fibonacci levels suggest the immediate price target is $0.017, based on the year-to-date low recorded on April 7. However, a potential reversal leading to a channel breakout could retest the 38.20% Fibonacci level at $0.031 if the price exceeds the $0.024 resistance level.
VeChain Derivatives
As VeChain clings to psychological support, the derivatives market remains quiet, with traders mostly on the sidelines. CoinGlass data shows $VET open interest has seen marginal growth of 0.04%, reaching $62.36 million.
However, liquidation data reveal a wipeout of bullish traders worth $76,390 in long liquidations. In contrast, short liquidations were just $2,000, indicating that most wiped-out positions were bullish. This has lowered the long-to-short ratio to 0.9459 over the past 24 hours, indicating that active bearish positions outnumber long positions.
