VeChain (VET) price has been trading sideways for the past few weeks. The decrease in volatility can be attributed to the sideways price action of BTC. Most altcoins are experiencing an increase in selling pressure due to the increase in BTC dominance.
On Wednesday, VeChain was trading 1.16% lower as the BTC price failed to break above $30,000 once again. At press time, the cryptocurrency was changing hands at $0.01868. The price is currently consolidating below a very critical level.
Most of the crypto traders like volatility in the markets. The decreased volatility and the sideways price action of VET crypto are keeping traders at bay. However, it is not a time to ignore this coin, as a major move is expected in the coming days.
Another reason behind the slump in VeChain price is the decreased network activity on its blockchain. According to DeFi Llama, the total locked value (TVL) on the network has plummeted to only $1.09 million. This is a 97% decrease from the 2021 all-time high TVL of $33 million.
As visible in the following VET chart, the price is retesting the downward trendline. This trendline has resulted in multiple rejections in the past few months, which is evident from the chart. A breakout from this trendline might result in a retest of the $0.02 level in the coming days.
For Vechain price prediction to flip bullish, the coin needs to reclaim the $0.02 level and flip it into support. This would mean a reclaim of the range lows and open the doors for a retest of the range highs. However, this setup is only likely to play out if BTC breaks above $31,500.
In the meantime, I’ll keep sharing updated VET price analysis and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 02, 2023, 14:16 BST 14:16