VeChain Plunges Amidst Market Drop: VET Tests Crucial Level

• 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.