The VeChain price has not been spared by the ongoing cryptocurrency sell-off. VET has dropped to $0.0615, which is the lowest it has been since March. It has dropped by more than 77% from its highest level on record, bringing its total market cap to slightly above $4 billion, making it the 22nd biggest cryptocurrency in the world.
VeChain has been one of the next performing cryptocurrencies in the past few months. This strength saw it rise to an all-time high of more than $0.2775 in April. The price was driven by the overall low interest rate environment and the fear of missing out (FOMO). Many investors also believed in the power of the VeChain network since large companies like Walmart and BMW are using its platform.
Still, all cryptocurrencies, including those that have a utility value like Bitcoin, Monero, and Ethereum have crashed this week as investors react to the ongoing China crackdown. Analysts believe that the crypto industry is seeing substantial supply as many Chinese holders liquidate their coins. As such, the price of any asset tends to drop when there is more supply and when there is mild demand.
The VeChain price is also crashing as investors start positioning for high interest rates. These two issues have seen Bitcoin drop below $30,000 and the total market cap of all coins tracked by CoinMarketCap drop to more than $1.16 trillion.
So, is this the end of VeChain? In my view, this volatility is expected, especially when there is significant news and events. Keep in mind that the crypto industry is battling regulatory concerns in many western countries. Therefore, I believe that the price will keep falling, for now, and then rebound in the next few weeks.
VeChain price forecast
A look at the daily chart shows that the VeChain price has done several bearish things. First, it has dropped sharply below the 50-day, 200-day, and 100-day exponential moving averages. This is a sign that bears are in total control. Second, the coin has dropped below $0.06612, which was the lowest level May 24.
As such, I cannot see any bullish sign at this point. This means that the coin will likely keep falling as bears target the next key support at $0.3435, which is about 45% below the current level. However, a jump above $0.10 will invalidate this trend.