VeChain (VET) Price Analysis: Bulls Attempt to Keep VET Afloat as the Company Bags Major Partnerships and Regulatory Feats

VeChain (VET) price has experienced a gain of 4.32% to $0.04127 in the last 24 hours. However, on the last day, VET price plunged over 11% retracement, trading at $0.03866 after having briefly broken

VeChain (VET) cryptocurrency experienced a gain of 4.32% to trade at $0.04127 in the last 24 hours. However, on the last day, VET price plunged over 11% retracement, trading at $0.03866 after having briefly broken out of a long-standing descending channel. The initial breakout was indicative of a shift in bullish momentum, but the recent retracement began to raise red flags as the altcoin approached the critical $0.037 support level.

Now, the short-term course of VET price will depend largely on the significance of the $0.037 level. In case of a successful hold, VET will have an opportunity to shoot towards the resistance at $0.05. In the case of a breakdown, there may be prolonged consolidation or further losses as the market will turn cautious.

Since the VeChain price holds well above the crucial support level, traders could expect a further rally, as reported by CNF. Meanwhile, the 50-day SMA, currently at $0.02608, and the 200-day SMA, now at $0.02663, are gradually crossing over. These instances have been bullish throughout history and may reverse downwards if the support line at $0.037 is broken.

The RSI was captured at 66.82, just below the overbought level, while the price bounced back and momentum continued. The MACD is also showing a narrowing bullish histogram, which suggests diminishing momentum. A potential bearish crossover in the signal line may further pressure VET in the short run, indicating a possible consolidation before another breakout attempt.

The Long/Short Ratio from Coinglass indicated a cautious market sentiment, as 54.31% of traders held short positions against 45.69% holding long positions. This imbalance shows a lack of confidence in immediate upside potential as traders seem to be expecting further downside before a recovery.

What’s Next For VET Price?

According to Santiment, VeChain’s development activity declined slightly to 4.89, dropping from the recent highs. This is still a relatively healthy figure, but this drop could undermine investor confidence. Continued or improved development activity will be important for restoring confidence in long-term holders.

The $0.037 support level is a very important battleground for bulls and bears. If this support level holds, VeChain can start to build some momentum for a recovery towards $0.05, supported by the golden cross that is coming, as reported by CNF. A failure to hold this level, however, may see the consolidation extended or more downside.

Traders and investors will watch closely the critical level and key indicators such as SMA, RSI, and MACD in the coming days to see which direction VET price action will go. As of yet, bulls are trying to keep the VET price up as the company behind the token, VeChain, bags major partnerships and regulatory feats.