- VeChain drops 5% after failing to break 50-day EMA resistance at $0.02609 level
- Open interest falls 9.48% to $62.85 million with long liquidations reaching $419,000
- Price breakdown below $0.02199 support could trigger decline to $0.02000 psychological level
VeChain has surrendered recent gains with a 5% intraday decline following its failure to break above the 50-day exponential moving average, creating renewed bearish pressure that threatens to undermine the token’s weekly recovery.
The cryptocurrency currently trades at $0.02222 after extending losses with a 5.17% drop, raising the probability of testing crucial support at $0.02199 that could determine near-term direction.
Following VeChain’s remarkable V-shaped comeback from last week’s three-day meltdown, which resulted in five consecutive bullish candles, the selling pressure became apparent.
This rally drove prices from $0.02253 to $0.02630, generating a 16% surge that restored investor confidence and suggested potential trend reversal. However, the upward momentum stalled at the 50-day EMA around $0.02609, where resistance proved insurmountable.
Technical Indicators Present Mixed Signals Amid Volatility
Wednesday’s sudden 4.87% crash confirmed the 50-day EMA’s role as a formidable barrier, with the rejection creating immediate downward pressure that broke below the $0.02471 support level. MACD and signal lines have flattened despite an earlier positive crossover, creating mixed technical signals that reflect increased price volatility and uncertainty about direction.
The declining trend across the 50-, 100-, and 200-day EMAs continues signaling a bearish long-term outlook for VeChain despite the recent recovery attempt. This technical configuration suggests that any rallies may face resistance from overhead moving averages, limiting upside potential until broader trend changes occur.
Current price action has increased the likelihood of VeChain retesting the $0.02199 horizontal support level, which serves as a critical threshold for maintaining recent gains. The drop may continue below the psychological $0.02000 level if it closes below this immediate support, with further support at $0.01974 following.
On the other hand, a possible recovery toward the 50-day EMA at $0.02609 is still feasible if VET manages to avoid closing below the $0.02471 level. This scenario would require renewed buying interest and broader market stability to support recovery momentum.
Derivatives market data reveals deteriorating sentiment as VeChain’s bearish trend re-emerges. Open interest dropped 9.48% to $62.85 million, indicating reduced trader participation and declining confidence in near-term price movements. This contraction suggests that market participants are stepping aside rather than taking new positions.
Long liquidations reached $419,000 while short liquidations remained minimal below $6,000, creating a substantial wipeout of bullish positions. The asymmetric liquidation pattern indicates that leveraged long traders faced margin calls as prices declined, contributing to additional selling pressure.
