VeChain Drops 1.79% Amid Bearish Momentum

VeChain (VET) is currently trading at $0.02139, marking a 1.79% decline on the daily chart. The token's downward trend is driven by persistent bearish momentum, leading to a detailed analysis of key patterns, support/resistance levels, and technical indicators. The overall outlook remains bearish unless clear reversal signals emerge.

The major support level for VET is at $0.0203, just below the current price. If this support fails to hold, the token could drop further to the psychological $0.0180 mark. On the upside, the key resistance levels are at $0.0242 and $0.0288. Reclaiming these levels would be necessary for any bullish momentum to return.

Chart patterns provide additional insights into VET's potential movements. A descending triangle pattern, a classic bearish continuation structure, suggests a likely breakdown if support around $0.020 is breached. Conversely, a falling wedge pattern, typically bullish, is also forming, but confirmation of a breakout has not yet occurred. Additionally, a bear flag pattern indicates that the current sideways consolidation might resolve downward following a steep drop.

Technical indicators further support the bearish outlook. The Bollinger Bands (20, 2) show VET hugging the lower band, reflecting oversold conditions and strong bearish pressure. The wide bands also signal high volatility. The MACD (12, 26) remains below the signal line and in the negative zone, indicating sustained bearish momentum with no crossover in sight. The price continues to trade below the 20-day EMA, reinforcing the downward trend. The RSI (14) is in the oversold region, hovering around 30, which suggests the potential for a bounce. However, historical behavior during strong downtrends shows that the RSI can stay oversold for extended periods.

Given the dominance of bearish patterns and the alignment of indicators, the near-term outlook for VET remains negative. If the $0.0203 support is lost, the next downside target lies near $0.0180. However, should the falling wedge break to the upside with increased volume, a relief rally toward $0.0242–$0.0250 could unfold. Volume remains relatively low, signaling a lack of conviction from buyers. A meaningful reversal will likely need a surge in demand accompanied by bullish confirmation from MACD and RSI.

VeChain is at a critical juncture. Traders should closely monitor the $0.0203 support and watch for any signs of divergence in RSI or bullish MACD crossover. Until then, caution is warranted as the bears maintain control.