The VeChain price is struggling to hold gains over the last couple of days and is currently down -3.30% to $0.1881 in Asian hours.
Since making an all-time high of $0.2798 back on the 17th of April, VeChain (VET) has experienced volatile trading conditions.
The coin had an outstanding run in the first four months of 2021.
From the 1st of January to its high just under one month ago, the VeCXhain price had risen 1300%. However, the last four weeks have not been as kind, and VET has lost 36% of its value since.
Just 3 days ago, VeChain was ranked as the 11th most valuable crypto asset. Today it has slipped to number 17, with a market cap of $11.4 Billion. Although, in fairness, this results from other crypto assets outperforming it, as The Vechain price is largely unchanged.
VeChain aims to address problems in supply chain management. The platform uses Internet of Things (IoT) technology to increase transparency and reduce costs.
VeChain founder Sunny Lu was formerly chief information officer at Louis Vuitton China.
Looking at the 4-hour chart, we can see that Vechain has been fluctuating wildly over the last month. It has so far managed to stay above an uptrend that has been in place since the March low,
The trend line is currently at $0.1520, which is around 12% lower than the current price. I consider this an important threshold, as the VeChain price has bounced hard on previous visits to the line.
The last touch of the trend line was on the 12th of May, and the coin rallied 30% in the following two days. This bounce appears to be fading at the moment.
I expect the VeChain price to return to this support soon, and how the price performs at this level will be key to its long-term direction. If the price is unable to maintain itself above the trend, it’s quite possible that we could see a return to the 23rd of April low at $0.1257.
If VET breaks above Fridays $0.1932 this would cancel the immediate bearish outlook.
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