VeChain [VET] Price Forecast: Can $0.037 Level Trigger a Rebound?

VeChain [VET] recently saw a significant price pullback following its breakout from a prolonged downward trend. The digital asset was valued at $0.03866, marking an 11.47% decline within the past day.

While the breakout initially hinted at a positive shift in market momentum, the recent price action suggests a sense of caution, with VET appearing to approach a critical retesting of the $0.037 support level.

The upcoming trading sessions may play a decisive role in determining whether VET will recover its bullish momentum or endure a prolonged period of consolidation.

Can VET Sustain the $0.037 Mark?

The breakout from the downward trend was a significant milestone for VET. Nevertheless, the recent retracement towards the $0.037 level highlights a degree of market uncertainty.

If the $0.037 level manages to hold, it could serve as a strong foundation for a potential move towards the $0.05 resistance level.

Furthermore, the 50-day SMA at $0.02566 and the 200-day SMA at $0.02659 are inching closer towards forming a golden cross, a historically bullish signal.

Hence, preserving the $0.037 level is paramount for sustaining upward momentum.

What Signals do Technical Indicators Provide?

At the time of writing, the RSI for VET stood at 63.03, slightly below the overbought threshold. While this indicates positive market sentiment, the recent dip aligns with the price retracement, hinting at a decrease in bullish pressure.

Additionally, the MACD’s bullish histogram is narrowing, indicating a fading momentum.

The signal line is also nearing a bearish crossover, suggesting a potential short-term downward trend.

Therefore, technical indicators imply that VET might undergo further consolidation before attempting to break towards higher price levels.

Are Traders More Inclined Towards Bullish or Bearish Sentiment?

Current market sentiment leans towards caution, as indicated by the Long/Short Ratio. Around 54.31% of traders have taken short positions, while 45.69% prefer long positions.

This imbalance reflects a lack of confidence in immediate upward potential, with traders foreseeing further downside before a possible recovery.

Hence, the $0.037 support level holds significant importance as the battleground between bullish and bearish forces in the upcoming trading sessions.

What Insights does Development Activity Provide?

On-chain data indicates a slight decline in VeChain’s development activity, currently standing at 4.89. Although this level is relatively healthy, the decrease from recent highs could impact investor confidence.

Nevertheless, consistent development efforts could reassure long-term holders in case the development activity stabilizes or improves.

The fate of VeChain largely hinges on the $0.037 support level. A successful defense of this level could pave the way for a potential recovery towards $0.05, supported by the anticipated golden cross.

Conversely, a failure to maintain the $0.037 mark might result in prolonged consolidation or further downward movement. The upcoming days will be critical in shaping VET’s short-term trajectory.