• 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

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

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: XRP in a league of its own as BTC and ETH  pull back

Bitcoin price is currently showing signs of retracement after a second attempt to rally higher. Ethereum price tried following in BTC’s footsteps but lacked momentum. On the other hand, Ripple price is paving its way, but it might fall in line soon.

More Cryptocurrencies News

Shiba Inu exposes risk of 20% collapse

Shiba Inu price action has been uneventful despite the recent crypto market rally led by Bitcoin. SHIB continues to consolidate as it moves sideways, and an indecisive technical pattern has emerged.

More Shiba Inu News

Polygon looks to double in market value

MATIC price is hovering above a crucial support level at $0.996, expecting a break above. A 13% retracement to $0.855 seems likely if the selling pressure increases. A 100% upswing to $1.727 is on the cards for Polygon.

More Polygon News

Flippening becomes more likely as ETH trade volume growth exceeds BTC in first half of 2021

The growth in the trade volume of Ethereum exceeded that of Bitcoin so far in 2021, according to a report from Coinbase Global Inc. Increasing popularity of decentralized finance and the rise of scaling solutions are among key factors contributing to Ethereum's performance.

More Ethereum News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast