VeChain staged a modest recovery today against the USD but tumbled a further 5.11% against BTC. Despite its successful mainnet launch, VeChain has suffered heavy losses over the past month and is still searching for the bottom. The community remains uncertain over what is truly happening to the price of VEN, with several conspiracies making the rounds on Reddit and other popular crypto forums with regard to the probable cause of this decline.
(1) China’s LBank, which has been officially announced as the first exchange to support VET swaps and has recently accounted for a vast majority of VEN trading, has been under heavy scrutiny over allegations of wash trading VEN.
(2) Earlier in the week, a sell order for just under 500,000 VEN went through, sparking off a huge debate as to what this could mean – perhaps a whale with insider knowledge selling off their entire holding before VEN bottoms out? Or has the VeChain foundation sold off some of its stores to make the new VET launch even more popular with investors at the new low market price?
Whatever the reason behind the decline, something has seriously spooked VEN traders this week, dragging the price down by 13.15% over the past seven days to the lowest price point we have seen in more than months.
Looking at the 4hr VEN/BTC chart, we can see the asset has been falling almost vertically for the last 14 days, experiencing two particularly heavy selling periods that have driven the bearish continuation.
Its descent has been slowed down briefly by today’s market turnaround, with Bitcoin’s sudden 10% surge providing some anchorage for VEN’s price action.
While indicators are still looking poor for the asset, this could in some ways prove beneficial to the project in the long term as more people will have the opportunity to buy network nodes at reduced rates, thus strengthening the decentralized nature of the network.
Let’s take a look at what the indicators are telling us over 1hr candles.
Bearish signals all round
- MACD returning to the support beneath the signal line as momentum takes an intraday dip.
- RSI has also returned to the oversold region of the index, below the resisting level shown in the chart above.
- 50, 200, and 500 EMA lines (blue, red, and yellow respectively) are still bearishly separated.
- Chaikin money flow shows a weakening trend, with increasingly lower closing prices.
- On the ichimoku indicator, we can also see a bearish T/K crossing and a resisting kumo cloud stretching out ahead of the price action.
This information makes it quite clear that VeChain still has some falling to do against BTC, especially now that the latter is gaining significant traction in the current market.
Vechain (VEN) price targets
All price targets are set from 25,800 Sats, where the asset is currently valued (at the time of writing).
Price Target 1: The first strong support for this asset is fairly close now, around the 24,000 Sats mark/ 0.236 fib level. Candles are already starting to whipsaw as the bullish traders start to push back against the downtrend, but we can see the bears still have the upper hand. A fall to this point will deliver a further loss of 6.42%.
Price Target 2: The bottom for this asset will be at 17,700 Sats, which is a historical support zone for VEN when it ran towards its all-time high in January this year. A drop to this point will represent a 31.40% decline in the asset’s current value.
This article appeared first on Cryptovest
