The VeChain price has struggled even as other altcoins soar to record highs. The VET price is trading at $0.13, which is still more than 50% below its all-time high. Its total market capitalization has dropped to about $8.47 billion, making it the 24th biggest cryptocurrency in the world. It is sandwiched between Axie Infinity and Stellar.
Why has VET price struggled?
VeChain was one of the most popular cryptocurrencies in the world a few months ago. Indeed, at its peak, it used to trend regularly in social media platforms like Twitter and StockTwits. It was also searched significantly during that period.
Recently, however, the momentum and hype surrounding VeChain have faded. This has translated to a sluggish performance since it has a long way to go before it reaches its all-time high.
It is unclear why the VET price has lagged in the past few weeks. However, one key reason could be the impact of the China ban on cryptocurrencies. This is notable since VeChain is a Chinese company. Indeed, it is a member of a consortium of companies that are promoting the road and bridge initiative.
While VeChain’s headquarter is in Singapore, most companies that use its products are Chinese. Therefore, the crackdown on regulators has made the coin underperform its peers.
Another reason why the VeChain price has struggled is probably that investors have been focusing on other types of cryptocurrencies. Some of the best performing cryptocurrencies have been meme coins like Dogecoin and Shiba Inu. Also, Ethereum-killers like Solana, Avalanche, and Terra have also done well.
Still, fundamentally, VeChain’s developers are doing relatively well. For example, they announced that their food safety SAAS platform had added Light Food Brand.
VeChain price prediction
The daily chart shows that the VET price has been in a tight range in the past few weeks. The coin has managed to move above the 25-day and 50-day moving averages. It has also found strong resistance at the key level at $0.1570. The price is above the ascending red trendline while the Relative Strength Index (RSI) has been rising.
Therefore, I expect that the VeChain price will remain in the current range for a while. A bullish breakout will be validated if the price manages to move above the key resistance at $0.1570. A drop below $0.1050 will be a bearish signal.
