The VeChain price has not been left behind in the ongoing Bitcoin and altcoins support. The VET price has dropped to $0.1607, which is more than 40% below its all-time high of $0.2785. The currency’s market cap has dropped to more than $10 billion and is the 17th-largest digital currency in the world.
What happened: The VeChain price tends to be closely tied to that of Bitcoin. Its price tends to surge when BTC rises and vice versa. This is possibly because of the fact that most people invest in altcoins as a proxy for BTC. Furthermore, with $1,000, one can make more money investing in an altcoin like VeChain than a large digital currency like Bitcoin.
And Bitcoin is not doing well today. The currency has dropped by more than 30% from its all-time high as worries about high interest rates remain. Also, the recent decision by Tesla to abandon the currency on mining concerns have had negative impacts on BTC. Worse, there is a possibility that the currency is considering exiting its investments in the currency. All these reasons could have a negative impact on Bitcoin, and VeChain in extension. So, what next for VET prices?
VeChain Price Prediction
The daily chart is not looking good for the VeChain price. The chart shows that the VET price dropped to $0.1490 during the April sell-off. This was an important level since it was slightly below the 50% Fibonacci retracement level. It then rebounded and reached a high of $0.2500. Now, the currency has been on a downward trend that has seen approach the 50% retracement again.
Notably, it has already crossed the 50-day moving average. Therefore, in my view. It seems that there are now more sellers than buyers. As such, a longer period of weakness could continue if bears manage to move below the 50% retracement at $0.1430. However, another recovery rally above the 23.6% retracement at $0.2135 will invalidate this trend.
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VET Price Chart
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