VeChain (VET) has been under significant pressure recently, with its price dropping by 7.79% on April 2, 2025, amidst a broader crypto market decline. This pullback, which has seen VeChain’s price hover around the $0.020 psychological level, has raised concerns that the cryptocurrency could see further losses, possibly touching $0.018. The market’s ongoing volatility, particularly driven by fears over the potential impact of a US tariff war, has led to a tightening of market sentiment, contributing to VeChain’s bearish outlook.

Technical Analysis: Falling Wedge Formation

On the daily chart, VeChain is currently trapped within a falling wedge pattern, which typically signals a potential bullish breakout in the longer term. However, the current market conditions are presenting significant resistance, causing a bearish reversal from the overhead resistance trendline. Falling wedge patterns often indicate that a cryptocurrency is undergoing a consolidation phase before breaking out in either direction. However, the prevailing market sentiment, influenced by economic uncertainties, has led to a weakening bullish trend, intensifying the downward pressure on VeChain’s price.

At present, VeChain is testing critical support levels, particularly the $0.020 mark. According to the pivot point indicator, the S1 support level at $0.021 is holding steady, offering some temporary respite amid rising selling pressure. Although there was a brief 1.09% recovery in price, pushing VeChain to $0.021831, the overall trend remains bearish. The daily Relative Strength Index (RSI) also suggests weakening momentum, currently sitting just above the oversold boundary, which further supports the bearish outlook in the short term.

Market Sentiment and Economic Impact

The broader market sentiment has been negatively affected by global economic uncertainties, particularly the US President’s executive order to initiate tariff wars. The potential ripple effects of this economic maneuver have caused a 3.49% pullback in the overall crypto market. As a result, the crypto space has become more cautious, leading to a reduction in buying pressure and an increase in selling activity. These factors have contributed to the ongoing pressure on VeChain, preventing any substantial recovery in the price.

VeChain’s price action reflects these concerns, as the cryptocurrency is currently testing key support levels and facing resistance from the broader market downturn. While the falling wedge pattern suggests that a breakout could eventually happen, the continued economic uncertainty makes any upward movement less certain in the short term.

Positive Network Developments

Despite the challenging market conditions, there have been some positive developments within the VeChain ecosystem. In the first quarter of 2025, the number of active accounts on the VeChain network saw a significant increase, rising from 9,000 to a three-month high of 74,491. As of April 2, 2025, active accounts stand at 37,114. This growth indicates that the network is gaining traction, even as its price remains under pressure.

Furthermore, VeChain is preparing for its “Renaissance” introduce in July 2025, which will include a comprehensive update to its tokenomics and introduce new use cases for the network. This could lead to a surge in adoption and provide a boost to the token’s value. Additionally, VeChain has secured the MiCAR license in European markets, which will likely facilitate further adoption by European enterprises.

Price Targets and Outlook

In the short term, VeChain’s price may continue to fluctuate within the falling wedge pattern, with a potential drop to the $0.018 support level if selling pressure continues to mount. However, the upcoming developments, including the Renaissance introduce and governance proposal updates, offer the possibility of a bullish breakout in the medium to long term. If VeChain breaks above the resistance at $0.030, the token could see further upside, with a potential target at that psychological level.

In conclusion, while VeChain’s price faces significant short-term challenges, its network’s ongoing growth and upcoming developments could pave the way for a potential rebound and long-term upside.