The VeChain price declined sharply as the overall sell-off of cryptocurrencies accelerated. The VET price declined to $0.1577, which was 47% below its all-time high. Its market capitalization has also dropped to more than $11 billion while its ranking has slipped to 11.
What happened: The overnight performance of VeChain provides further evidence about the close correlation among cryptocurrencies. The main catalyst for the sell-off was the statement by Elon Musk on Tesla. The CEO said that the company would stop accepting Bitcoin because of environmental concerns. This was a major setback for the currency since Tesla is the biggest company that accepts the currency.
Further, the currency fell after data by the United States showed that inflation continued to surge in April helped by the rising commodity prices and the recent stimulus. This poses risks for VeChain price because of the potential for high-interest rates. Later today, the currency will react to the latest producer price index (PPI) data and initial jobless claims numbers.
VeChain price prediction
In my last VeChain price prediction, I wrote that I was cautiously optimistic that the price would rebound. I cited the fact that the price was at the lower side of the ascending channel. As such, I expected it to rebound as bulls targeted the upper side of the channel.
However, the opposite happened as the price moved below the lower side of the channel. Worse, the price formed a head and shoulders pattern and moved below the 25-day and 50-day exponential moving averages. All these are bearish signs.
Therefore, In the near term, there is a possibility that the price will remain under pressure as high-interest rates concerns remain. However, a move above $0.2150 will invalidate this prediction.
VET price chart
Follow Crispus on Twitter.