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- VeChain’s derivatives market shows positive signs with rising open interest and funding rates.
- The Pay With VET initiative and strong fundamentals boost investor confidence.
- A breakout could help the VET price reach yearly highs, but support levels are crucial to watch.
VeChain (VET) has faced a sharp decline, plummeting by over 60% from its peak of $0.0549 to $0.0221. Over the past month, the VET price dropped by 6% and 22% over the last quarter, indicating a strong downtrend. However, the token bounced back in the past week, rising by 8.05% alongside Bitcoin‘s surge.
Despite breaching the 20-day EMA, the VET price remained below the 50-day and 200-day EMAs. The Crypto Fear and Greed Index has only increased slightly from 31 to 32, keeping the market in the fear zone.
Bitcoin’s stability at $58,000 with minor gains this week mirrors VeChain‘s performance, highlighting its strong correlation with BTC. This correlation suggested that VeChain crypto may continue to experience market turbulence and future price momentum similar to Bitcoin.
A Glance At VET Price Derivatives Data Analysis
According to Coinglass, VeChain’s open interest has climbed to $28.95 Million, a 4.35% increase from the previous session. The 24-hour long/short ratio stood at 1.0125, indicating a slight edge for short positions over long ones.
In the last 24 hours, $1.06K worth of short positions were opened, with no long positions liquidated intraday. This suggested a positive outlook for VeChain in the market.
These metrics highlighted a bullish sentiment for VET, with the recent price surge supported by these values. The rise in open contracts and greater short-side liquidations indicated the potential for further VeChain price increases.
Additionally, derivatives volume has surged by 23.77%, bringing the total traded value to $17.72 Million. This reflected the growing demand for VET in the derivatives market.
VeChain’s OI-weighted funding rates have also risen to 0.0099% positive, signaling a shift in market sentiment toward optimism. Traders have placed bets on the increased potential for the rise of the VET price.
Broader Market Influence And Pay With VET Initiative Boosted Confidence
On September 6th, 2024, VeChain made an important announcement. The platform announced that it is now accepted by over 100 million retailers worldwide through Oobit on Apple’s iOS platform.
Big news, #VeChain fans! You can now use $VET to pay at 100M+ retailers globally with @Oobit on iOS! ✨ Experience the future of payments right from your iPhone. https://t.co/CpalXYLsi8 pic.twitter.com/pV2jdEE8Hg
— Collin Brown (@CollinBrownXRP) September 6, 2024
This move was executed to boost the significant adoption of VET transactions. The VET price rose after this announcement, supported by positive market sentiment.
VeChain crypto’s fundamental score also reached an impressive 95.89 out of 100. According to Certik Skynet’s data, VET boasted a robust security classification of 2A with a top-tier security score of 92.59.
The project’s development is thriving, with the developer community awarding its repositories 5.2K stars and an intraday growth of 53. The GitHub account has been active for 6 years and 10 months, marking it as a token from the early days of the crypto era.
VeChain (VET) Price Outlook
Starting from the last week of October 2023, the VeChain price showed an upward trend. The token formed higher highs and lows until it hit the supply level at $0.0549 by early 2024.
However, the VET price faced resistance at this level. It failed to break through after three attempts and was pushed down by bearish pressure.
By mid-May 2024, VET found support at $0.03324, but this level failed to hold. This led to a further decline toward the initial demand zone by August 5th. Over the past six months, VET has been under consistent selling pressure, resulting in a 65% price drop.
This downtrend has formed a falling wedge pattern, highlighting a bearish market sentiment. A critical level to watch was $0.03300, a significant point for traders.
Despite these challenges, the VET price attempted a breakout after a liquidity grab on August 5th, 2024. However, it faced strong resistance at $0.02395. The upper border of the declining wedge and the 50-day EMA band could add to the downward pressure.
On the other hand, if VET manages to break out, it could rise towards yearly highs. Crypto enthusiasts like @CryptoYapper believe a breakout is imminent.
$VET Breaking Soon !
— Crypto Yapper (@CryptoYapper) September 12, 2024
This Massive daily formation will break soon for #VET
The Bullish break out target will $0.05
Are you prepared for this huge move for #Vechain ? pic.twitter.com/yiiF2kmUSq
Currently, key support levels for VET were at $0.02150 and $0.02055. At the same time, resistance levels were at $0.02730 and $0.03290.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
