- The VeChain price has crashed by 28% from its highest point this month.
- There are concerns about the falling number of transactions in the network.
The VeChain price bullish momentum has waned and dropped to the lowest level since March 27th. The VET token is trading at $0.064, which was about 28% below its highest level in March. Its market cap has retreated to about $4.28 billion.
VET loses momentum
VeChain was one of the best performing cryptocurrencies in March as investors rushed to the so-called fallen angels. Others that did well were Synthetix, Filecoin, and Zilliqa.
VeChain rallied as investors focused on the partnerships the developers inked in March. For example, they partnered with Alchemy Pay, a company that is at the intersection of fiat currencies and cryptocurrencies. Alchemy is now accepted in over 2 million online and offline businesses.
VeChain also partnered with Draper University in a deal that will see its experts train web 3 founders. Draper was one of the earliest backers of VeChain.
Recently, however, VeChain price has struggled as investors focus on macro issues in the market. The most notable one has been the inversion of the yield curve to the lowest level since 2007. Analysts expect that the US will see a major recession in the coming months as the Fed has embraced a more hawkish tone.
Another reason why the VET price has struggled is that the level of activity in the platform has dropped. Most platforms in its ecosystem like VeeParrots, Ratverse, and Guardians NFT have seen a dramatic decline of activity.
The same is true among other platforms like Vesitor, VeKings NFT, and Signing Service. The chart below shows that the mainnet activity is much lower than where it was in January this year.
VeChain price prediction
The four-hour chart shows that the VET price has been in a strong downward trend in the past few weeks. In this period, it has moved below the 50% Fibonacci retracement level and the 25-day and 50-day moving averages.
A closer look reveals that it has found a strong support at $0.063 while the MACD has moved below the neutral level. Therefore, the bearish trend will likely continue in April if bears manage to move below this support level. If this happens, the next key support level to watch will be at $0.060. Learn how you can make money using cryptocurrency spread betting.
