VeChain Price Crash: What’s Behind VET’s Struggle to Stay Above $0.016?
VeChain (VET) Faces Fresh Downtrend as Binance Leverage Cuts Trigger Market Pressure
VeChain (VET) is once again under selling pressure, extending its downward momentum after a series of technical breakdowns and regulatory adjustments on major exchanges. The token fell 4.63% over the past 24 hours to trade at $0.01515, marking its weakest performance in nearly three weeks and underperforming the broader cryptocurrency market’s 2.38% decline.
Despite increased trading activity, VeChain’s (VET) chart patterns now reflect a weakening technical structure, signaling that bearish sentiment may persist in the short term.
Technical Breakdown Deepens as Key Levels Fail
Analysts note that VeChain’s (VET) price deterioration accelerated after breaking below its 50% Fibonacci retracement level at $0.0176, a zone previously regarded as critical for maintaining upward momentum. The breakdown of this technical level triggered algorithmic selling, reinforcing the broader bearish sentiment that has swept through altcoin markets.
VeChain has also slipped below both its 7-day and 30-day moving averages, confirming a loss of short-term momentum and further eroding investor confidence. The Relative Strength Index (RSI) has dropped to 38.27, nearing oversold territory, while the MACD continues to post negative readings, signaling persistent downward pressure.
Traders said the inability to defend the Fibonacci midpoint suggests that the next target may be the lower support zone near $0.0139, where previous accumulation occurred. If the token fails to hold above this support, a deeper correction toward early 2024 lows could emerge.
“VeChain’s technicals are clearly showing fatigue,” said independent crypto analyst Marcus Lin. “Breaking the $0.017 level has created a cascading effect that could take the price below $0.014 unless broader market sentiment improves.”
Despite several attempts to rebound intraday, VeChain has failed to sustain any recovery momentum, reflecting uncertainty across retail and institutional segments.
Binance’s Margin Cuts Pressure Market Liquidity
Adding to the selling pressure, Binance announced a reduction in VeChain’s (VET) collateral ratio from 60% to 40%, significantly tightening leverage access for traders using VET as margin collateral. The change effectively reduces the borrowing power of users and discourages aggressive speculative trading.
According to market analysts, this adjustment triggered forced deleveraging among margin traders, leading to short-term selling across trading pairs and deepening downward volatility.
The reduction in margin allowances also contributed to lower participation from leverage-based traders, leading to a contraction in daily trading volume relative to its monthly average. Although overall trading activity remains elevated, the liquidity quality has diminished, resulting in choppy intraday movements.
“Binance’s margin update is a double-edged sword,” said Singapore-based crypto strategist Elaine Yu. “While it limits risk exposure, it also drains short-term liquidity that often stabilizes the market. Without leverage, price recovery tends to be slower.”
Market participants now anticipate that any reversal in Binance’s leverage policy—or new liquidity injections from other exchanges—could gradually restore VeChain’s market depth and volatility equilibrium.
Macro and Sectoral Headwinds Amplify Weakness
VeChain’s current slide comes amid growing weakness across mid-cap altcoins. Bitcoin’s dominance climbed to 59.5%, reflecting renewed capital concentration in the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). This rotation has drained liquidity from smaller assets like VeChain, Cardano, and Algorand.
The Altcoin Season Index has dropped nearly 60% in recent weeks, suggesting investors are prioritizing capital safety and large-cap stability over speculative growth assets. The shift follows weeks of uncertainty surrounding U.S. monetary policy, Asian market regulations, and declining global liquidity conditions.
“Altcoin weakness has been building for weeks,” noted digital asset researcher Henry Tate. “When Bitcoin consolidates above $100,000, money tends to move out of the mid-tier projects like VeChain. Unless Bitcoin stabilizes, recovery for VET will be limited.”
Enterprise Momentum Fails to Counter Short-Term Pressure
Despite its near-term struggles, VeChain continues to expand its enterprise and blockchain integration network, highlighting long-term potential in supply chain, sustainability, and tokenization solutions. Recent collaborations, including Wanchain interoperability and StarGate blockchain integrations, are designed to enhance the scalability and interoperability of VeChain’s ecosystem.
However, these positive developments have done little to lift near-term sentiment. Market participants appear to be prioritizing liquidity and short-term returns over fundamental growth stories. As a result, VeChain’s strong corporate use-case narrative has not yet translated into sustained market momentum.
In a recent community update, VeChain Foundation emphasized that its ongoing initiatives remain unaffected by market fluctuations. The foundation reaffirmed its focus on real-world asset tracking, sustainability token frameworks, and cross-chain interoperability.
Still, investors appear to be adopting a wait-and-see approach. Trading patterns show cautious positioning, with reduced spot accumulation and lower network activity across decentralized applications (dApps) linked to VeChainThor.
Technical Outlook: What Comes Next for VET
From a technical standpoint, VeChain’s (VET) structure remains bearish as long as the price trades below the 30-day simple moving average (SMA) at $0.0184. A decisive daily close above this level could signal the beginning of a short-term relief rally.
However, analysts caution that sustained recovery will require both volume expansion and improved sentiment in the broader altcoin sector. Failure to reclaim $0.016 on a daily basis may prolong consolidation or trigger another downward leg.
If VeChain stabilizes above $0.016, it could retest resistance zones at $0.0176 and $0.0184. Conversely, a breakdown below $0.0139 could expose the token to deeper retracement levels near $0.0127.
Market volatility is expected to remain elevated in the coming days as traders react to U.S. macroeconomic data and the upcoming Federal Reserve commentary. Both events could influence broader crypto sentiment and impact VeChain’s recovery potential.
Broader Implications for the Altcoin Market
VeChain’s downturn underscores the fragile balance in the mid-cap altcoin market, where liquidity conditions remain tight, and speculative participation has declined. As Bitcoin continues to dominate capital inflows, smaller tokens are facing increasing challenges to maintain relevance and price stability.
For VeChain, the coming weeks will be crucial. A successful defense of the $0.014 level could help restore technical balance and investor confidence. Conversely, continued weakness could drive capital further toward larger, more liquid assets.
While VeChain’s long-term fundamentals—especially in the areas of supply chain traceability, sustainability, and tokenized asset infrastructure—remain strong, the near-term technical picture suggests limited upside until market confidence returns.
Conclusion
VeChain (VET) is navigating one of its most challenging trading phases in months. The token’s sharp decline below key Fibonacci and moving average levels, combined with Binance’s leverage reduction, has created a convergence of technical and liquidity pressures.
Although long-term fundamentals remain intact, the immediate outlook appears bearish, with the next support seen around $0.0139. Traders and long-term investors alike are closely watching whether the token can reclaim the $0.016–$0.018 range to reestablish momentum and stabilize its structure.
Ultimately, VeChain’s recovery will depend on the broader crypto market’s risk appetite, liquidity flows, and whether institutional interest returns to the mid-cap segment of the digital asset ecosystem.
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