- There is a sell signal at the $0.023 to $0.024 price level, which means that the smart money will dump after bagging multi-month highs on VeChain.
- Spot trading volume declined by 27.91 percent, which indicates a low level of market activity and a lack of momentum in recent price action.
- Distribution is on the cards as technical patterns suggest that the price will revisit a fair value gap and attempt to fill a vital liquidity pool that can be filled at $0.01771.
VeChain (VET) is displaying evidence of a possible downside movement after technical rejection at the resistance level of 0.023-0.024. According to the analysis of Smart Money Concept (SMC), the token has just swept through the recent three-month highs and turned around brutally, suggesting a high probability of a bull trap. Such a move is generally an indicator of possible selling of positions by institutional traders, commonly known as smart money, where wealthy Chinese investors just kept on coming.
The recent price movement shows that the VET is entering a Fair Value Gap (FVG), a price region where the price has moved too swiftly, leading to some form of imbalance. These corrections are usually used to fill such loopholes. The chart demonstrates a structure break in the market and an imbalance overlapping, which adds to bearish expectations. A short trade at 0.02341 is proposed with the aim of 0.01771, and this fits into a liquidity pool that is observable on the daily timeframe.
Resistance pressure and the spot volume decrease
VeChain trades at $0.0223 with only a slight 0.03% intraday growth. Nonetheless, it has fallen by 27.91 percent to a level of 24-hour spot volume of $16.96 million. This drastic reduction implies a dip in momentum and a loss of interest of traders in the short run. Also, the price has not overcome the resistance of the range marked with the value of $0.0224, as this value has been limiting the upside advance over the last several days.
Source: Messari
Price chart reveals a pattern of lower highs and shallow pullbacks, which could indicate distribution. Without a breakout above recent resistance levels backed by increased volume, the likelihood of a correction increases. These signs are consistent with the smart money reversal setup currently in focus.
Market Metrics and Project Fundamentals
VeChain’s market capitalization stands at $1.91 billion, with a circulating supply of 86 billion VET. The fully diluted valuation also matches the market cap, reflecting full token unlock. Futures interest remains steady, with $84.92 million in volume and $29.85 million in open interest. The funding rate of 0.0085%, annualized at 9.34%, points to a slight long-side bias without significant leverage risk.
As a Layer-1 blockchain platform focused on enterprise-grade supply chain solutions and IoT integration, VeChain maintains relevance in real-world applications. However, short-term technical signals currently suggest caution until market strength re-emerge.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
