VeChain downside pressure persists despite ecosystem partnerships and network upgrades: weekly analysis

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VeChain drops 10.96% this week

Highlights

VeChain has dropped 10.96% over the past week and trades below near-term moving averages, maintaining a bearish daily trend.
Momentum indicators are oversold and volatility has reached 23.23%, indicating potential for a short-term rebound if selling eases.
For the next 7 days, VeChain is projected to trade between $0.00614298 and $0.007764, with a 77% likelihood of further decline.

Institutional partnerships and upgrades underpin network activity amid ecosystem expansion

VeChain's ongoing institutional partnerships are supporting its long-term ecosystem outlook, with LiteFinance noting collaborations with organizations such as BMW, PwC, and Walmart China. Recent developments include the 2024 Renaissance upgrade, which introduced Ethereum compatibility, delegated Proof of Stake, dynamic gas fees, reduced VTHO inflation, and NFT staking, all aiming to bolster sustainability and Web3 adoption (source: LiteFinance). Over 2 million active users have been reported, confirming continued network activity according to isthiscoinascam.com.

Oversold oscillators highlight stretched selling as MACD stays negative over the week

Momentum on the daily chart shows a sustained move lower with a firm trend, confirmed as volatility reached 23.23% and MACD remains negative. Both the CCI and Stochastic RSI are in the oversold zone, with CCI at -124.16125221 and Stoch RSI at 0, highlighting stretched selling. Immediate support is at $0.006573, while resistance aligns with the MA-50 at $0.00788094 and an additional ceiling from the Ichimoku Kijun at $0.0082455. The probability setup favors further downside, but deeply oversold oscillators suggest the risk of a short-term bounce if sellers lose momentum.

Continued pressure expected unless resistance break triggers rebound next week

For the next 7 days, VeChain is expected to trade between $0.00614298 and $0.007764. There is a 23% probability of an increase and a 77% chance of a decrease. The base case is continued pressure with the price oscillating beneath resistance, staying inside the range. A close above $0.00788094 could trigger a squeeze toward the upper band, while a breakdown below $0.006573 would argue for additional weakness toward the lower end of the forecast range.

Sholanke Dele, market strategist, notes VeChain (VET) endured another difficult week, falling over 10% as strong downside momentum persisted. He sees the daily chart indicators locked in oversold territory, with the MACD negative and CCI at -124.16125221, confirming sustained selling pressure. Although institutional partnerships and the recent 2024 Renaissance upgrade continue to support VeChain's long-term adoption, they have yet to translate into short-term resilience. For the coming week, Dele expects VET to remain under pressure with a 77% probability of further downside, unless sellers lose momentum and trigger a short-lived bounce. "As long as price trades below the MA-50 at $0.00788094, I remain cautious and see no strong reason to expect a sustained rebound this week."

Earlier, analysts noted that VeChain had entered a phase of consolidation with technical signals suggesting a modest upward bias. However, the current technical landscape points to an increased likelihood of further downside, making the $0.006573 support level crucial to monitor for any signs of a potential reversal or deeper retracement in the coming sessions.

Source of Data: VET Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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