VeChain (VET) is facing continued pressure in the crypto market, with its price slipping further after a series of bearish moves. Following an 8% decline on April 15, the altcoin has continued to lose ground, falling another 3.57% intraday. As the altcoin market experiences a 2% dip this week, VeChain is finding itself retesting its breakout from a falling wedge pattern, with some analysts suggesting that a drop to $0.018 might be on the horizon if the current trend continues.

Technical Analysis: The Case for a Bearish Move

On the daily chart, VeChain displayed a breakout from a falling wedge pattern, a technical setup that often signals the potential for a price reversal. However, the rally from the breakout failed to gain momentum, with VET struggling to surpass the 50-day exponential moving average (EMA) at around $0.025. This resistance has proved significant, with VET being rejected at the 78.6% Fibonacci level at $0.02574.

This failure to break through key resistance has set the stage for bearish action. An engulfing red candle formed after the failed breakout, completing an evening star pattern, a classic bearish reversal signal. The market sentiment has turned increasingly negative, with the Relative Strength Index (RSI) dipping below the neutral midpoint, indicating a weakening of bullish momentum.

Currently, VeChain is trading at $0.02173, just above the broken resistance trendline. However, with the overall market sentiment leaning bearish and the 50-day, 100-day, and 200-day EMAs aligned in a downtrend, the likelihood of a further decline remains high. Analysts are eyeing the $0.020 psychological level as the next critical support. A breakdown below this level could lead VeChain’s price to test the $0.018 baseline, where further support may be found.

New Partnerships Bring Hope for VeChain’s Long-Term Potential

Despite its current price struggles, VeChain continues to attract attention through high-profile partnerships that could bolster its market standing in the future. Notably, VeChain recently secured a partnership with UFC CEO Dana White, who has joined as an official advisor. This move could open the door for additional influential partnerships, bringing more attention and credibility to the project.

Additionally, VeChain has teamed up with 4ocean, a company focused on combating plastic pollution using blockchain technology. This collaboration highlights VeChain’s ongoing efforts to use its platform for impactful real-world applications, which could enhance its adoption and long-term growth potential.

Analyst Targeting 150% Surge in VeChain Price

Despite the short-term bearish outlook, there’s still significant optimism around VeChain’s price, with some analysts predicting a potential breakout. Crypto analyst Jonathan Carter has pointed out that VeChain’s breakout from the falling wedge pattern could trigger a high-momentum bull run. Carter identified key resistance levels at $0.0275, $0.040, $0.048, and $0.057, with an upside potential of up to 150%.

However, this bullish outlook hinges on a successful retest of the support levels. If VeChain fails to hold above the $0.020 psychological level and breaks below it, VET could slide to the $0.018 support zone. On the other hand, if the price finds strength at these levels and breaks past the 78.6% Fibonacci retracement level at $0.025, a bullish reversal could push VET towards the 50% Fibonacci level at $0.038, offering further upside potential.

Key Takeaways:

• VeChain (VET) is facing renewed selling pressure and is retesting the breakout from a falling wedge pattern.

• The failure to break above the 50-day EMA and the completion of an evening star pattern signal potential for further downside.

• A breakdown below the $0.020 psychological level could lead VeChain to the $0.018 support level.

• On the bullish side, successful retests and breakouts above resistance levels could push VeChain to $0.0275 or higher.

• High-profile partnerships with figures like UFC CEO Dana White and initiatives like the 4ocean collaboration add long-term credibility to the project.

VeChain’s future price direction remains uncertain, but the current technical setup and market sentiment suggest that it’s a crucial time for the token. Investors will be keeping a close eye on the key support and resistance levels to determine if VeChain can break free from its bearish trend or if a deeper correction is in store.