VeChain (VET) Price Drops 7.79% Amidst Growing Concerns Over US Tariff Conflicts

VeChain (VET) has recently faced significant downward pressure, with its price dropping by 7.79% on April 2, 2025

If you haven't already, make sure to check out the previous analysis from yesterday.

As we move into April, the cryptocurrency market has encountered a setback, with a 3.49% decline today. This pullback follows a broader selloff in the U.S. stock market, driven by President Trump's executive order to begin a new round of tariff conflicts with China.

As a result of this broader weakness, VeChain (VET) is also facing some downward pressure, dropping by 7.79%.

But let's take a closer look at what's affecting VeChain's price action and what analysts are saying about the token's future.

VeChain Price Action Analysis: Is the $0.018 Support Level Holding?

Looking at the daily chart, we can see that VeChain is currently caught in a falling wedge pattern. This technical setup usually signals a potential bullish breakout, but in this case, the presence of a triple top pattern at the upper trendline suggests that the market is forming a bearish reversal.

At the moment, the price is approaching the $0.20 support level within the wedge. According to the pivot point indicator, the first support (S1) level at $0.21 is holding the price. However, with the increase in supply pressure, there is a possibility of a further drop to the S2 level at $0.01820.

Despite a brief recovery of 1.09%, the token's overall bullish momentum seems to be weakening. The Relative Strength Index (RSI) is hovering just above the oversold zone, indicating that the short-term upward momentum may be losing steam. Consequently, the possibility of a further correction remains high.

VeChain Network Performance Shows Recovery in Active Accounts

While the token price is struggling, there is some positive news to report on the network performance front.

Active accounts on the VeChain network soared to a three-month high of 74,491 in the first quarter of 2025, as reported by Token Terminal.

This surge follows a low of 9,000 active accounts in the fourth quarter of 2024.

As of April 2, 2025, the network boasts 37,114 active accounts, reflecting a steady recovery from the lows.

Analysts Highlight Future Potential for VeChain with Renaissance Launch and MiCAR License

Michael van de Poppe, the founder of MNConsultancy, predicts a positive outlook for VeChain, highlighting several key developments on the horizon.

His analysis, shared on X (formerly Twitter), suggests that the network's upcoming Renaissance launch, scheduled for July 2025, will bring significant updates to VeChain's tokenomics and introduce a new use case, potentially spurring further adoption.

The launch of updated tokenomics, coupled with the acquisition of the MiCAR license in the European market, is likely to drive growth, especially among European enterprises.

Additionally, governance proposals slated for Q2 2025 aim to enhance rewards for participants within the VeChain ecosystem, further incentivizing involvement.

Price Forecast: Can VeChain Reach $0.30?

While VeChain is currently experiencing a period of volatility, both technical analysis and upcoming fundamental updates suggest a potential for bullish movement in the future.

In the short term, the price may continue to fluctuate within the falling wedge pattern, possibly touching the S2 support level at $0.1820. However, if a breakout occurs, VET could challenge resistance at the $0.30 psychological mark.

In conclusion, $VET Chain's price action remains influenced by broader market trends, but the network's promising developments could lay the groundwork for a potential rally in the coming months.