- VeChain price completes complex topping process and busts two strategically important support levels.
- May 23 low of $0.65 is now in play as downside momentum accelerates across the cryptocurrency complex.
- VET social media volume remains in a steady downtrend, but investors should be mindful of a double bottom pattern.
VeChain price is currently down over 20% and is one of the ten worst performing cryptocurrencies on the core coverage list. The break with the rounded top has been a powerful resolution for the unsettled price action that dominated VET over the last month. With no clear support until the May 23 low, the altcoin should endure further losses moving forward.
VeChain price down 70% from the April high
VeChain price offered warning signs, including the lack of strength on the Bitcoin price jump of over 30% and the lack of accumulation during the complex topping process. Hence, the lack of decisiveness and commitment under the weight of a declining 50-day simple moving average (SMA) was too much pressure for VET to overcome.
Today’s decline, now near 23% at the time of writing, is the largest decline since the massive May 19 washout of 34.92%. The collapse has crushed the anchored volume-weighted average price (anchored VWAP) at $0.088 and the strategically important 200-day SMA at $0.085 and put VeChain price on the course to at least test the May 23 low of $0.065. To be blunt, it is a race for the exits.
A potential scenario for VeChain price is to sweep below the May 23 low before establishing a base well above the May 19 low of $0.042. But, of course, it is important to remember that VET can experience big price pockets like on May 19, so a sweep below $0.042 and even the 78.8% Fibonacci retracement of the rally from the end of December 2020 at $0.039 is a scenario to be mindful of, mainly when it represents a 47% decline from the current price.
VET/USD daily chart
Of course, the cryptocurrency complex could reverse higher for many reasons or tweets, so if VeChain price does close above $0.100 on a daily basis, VET investors are free to consider new long positions; otherwise, target pilot buys against critical support or remain on the sidelines until a clear buy signal is defined.
It is tough to dispute the importance of social media volume in driving prices higher in the crypto market, particularly during blow-off tops like those witnessed in April and May.
The social volume of VET has been trending lower since the April VeChain price peak, but there are signs that the Santiment Social Volume metric may be bottoming as the 7-day average turned higher over the last couple of days.
The metric tends to press higher in times of rising prices and trend lower during times of weakness, so the current development could be green-shoot in the VET social volume metric chart. A push above the most recent high of 177 would trigger a double bottom for the 7-day average and may confirm a new period of social media interest.
VET Social Volume - Santiment
VeChain price is in a price vacuum with no support of importance until $0.065. An acceleration of the selling will expose stubborn VET investors to considerable losses, even from the current price level. Therefore, to enhance short-term portfolio stability and ensure a profitable future, it is more advantageous to let the digital asset liquidate the last of the weak holders, giving clarity to the price structure.