July 17, 2024
1 Solar System Way, Planet Earth, USA
Crypto

VET Breaks Key Support Below $0.032: Downtrend Imminent?

VeChain (VET), a leading blockchain platform known for its supply chain and logistics solutions, has recently seen significant price movement. The cryptocurrency has broken below the critical support level of $0.03289, a development that indicates the persistence of its ongoing downtrend.

This breakout of support is a bearish signal, indicating that there is still a lot of selling pressure and that more drops could be on the horizon. Several causes, including general market conditions and particular difficulties facing the VeChain ecosystem, have contributed to the decline in FP prices.

Currently, the price of FP is down -0.61%, trading at around $0.03266, with a market capitalization of over $2.3 billion and a trading volume of over $88 million in at the time of writing this article. Although its market capitalization dropped by 9.28%, its trading volume increased by 36.06% in the last day.

In this article we are going to delve into what could be the next destination of FP prices with the help of indicators.

FP Price Analysis Using SMA and 100-Day RSI Indicator

VET price is currently trading below the 100-day simple moving average (SMA) on the 4-hour chart, following a sharp decline that saw it surpass the $0.03289 support level. This break of this key level could signal a further decline in prices.

VET

Furthermore, since the Relative Strength Index (RSI) line is trending below 50% after a sharp drop below it, the RSI indicator indicates that the crypto asset could continue in its bearish direction.

An observation of the daily time period chart reveals that VET It is currently bearish and could remain so depending on the price drop from the previous day. Furthermore, the asset's price is also trading below the 1-day SMA.

VET

Lastly, the 1-day RSI also confirms that the coin could continue in its bearish direction as the RSI line trends below 50% and moves towards the oversold zone.

Prospects for the future of VeChain

Based on the price analysis and what the RSI indicator suggests, if VeChain price continues to decline, it could trigger a move towards the $0.03267 support level. If it breaks this level, it may even fall further to test the $0.01820 support level.

On the other hand, VeChain price will start heading towards the $0.03802 resistance level if it decides to rally at this point. It will advance further to challenge the resistance level of $0.04303 if this level breaks. Furthermore, if it breaks this level, its price may rise further to new heights.

VET
VET is trading at $0.03244 on the 1D chart | Source: VEUSDT in Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com

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