VET Technical Analysis Feb 5

VeChain (VET) has dropped sharply by 12.86% in the last 24 hours to the $0.01 level, with RSI at 23.89 signaling the oversold region, drawing investors’ attention to critical supports; so, is a bounce from this bottom awaiting or deeper losses?

Market Overview and Current Status

The VET market, crushed under pressure from the broader crypto ecosystem, had a particularly tough day today. Trading at the $0.01 level, the token squeezed into a narrow $0.01 – $0.01 band over 24 hours and positioned itself in the middle of the downtrend with a 12.86% loss. Volume came in at $37.81 million, with clear selling pressure behind this drop; however, oversold signals bring the possibility of short-term relief to the table. Moving in sync with Bitcoin’s nearly 13% drop, VET suffered one of the sharpest losses among altcoins, and market sentiment has deteriorated significantly.

The overall trend is confirmed as downtrend, with the price trading below EMA20 ($0.01), strengthening the short-term bearish structure. The Supertrend indicator also gives a bearish signal, marking $0.01 as resistance. In this context, VET’s current position requires a cautious stance from investors; while the decrease in volume suggests sales may be nearing exhaustion, macro pressures persist. The market has become even more sensitive amid the Fed’s interest rate decisions and declining global risk appetite.

According to multi-timeframe (MTF) confluence analysis, a total of 7 strong levels were identified across 1D, 3D, and 1W timeframes: 1 support/3 resistances on 1D, 1S/1R on 3D, and 1S/2R on 1W. This confluence clarifies key regions that the price will soon test and provides critical clues for strategic positioning.

Technical Analysis: Levels to Watch

Support Regions

The strongest support is positioned at $0.0071 (score: 79/100); this region is reinforced by confluence from past lows and Fibonacci retracements. If the price pulls back here, the likelihood of buyers stepping in is high, as oversold conditions make this level even more attractive. Secondary supports at $0.0081 (64/100) and $0.0073 (62/100) should also be monitored; these could serve as intermediate buffers for a short-term rebound. In case of a breakdown, momentum could accelerate toward deeper levels.

Resistance Barriers

On the upside, the first serious obstacle stands at the $0.0143 (65/100) resistance; this level is strengthened by EMA20 and Supertrend confluence. A strong volume increase is required for the price to break above here; otherwise, the short-term bearish structure persists. Higher up, additional resistances from weekly timeframes will continue to pressure the price; in the current downtrend, these barriers stand out as the main factors limiting potential rallies.

Momentum Indicators and Trend Strength

RSI at 23.89 is trading in the oversold region (below 30), signaling potential mean reversion; this level has formed bottoms for VET several times in the past. However, the MACD histogram is negative and confirms a bearish crossover, meaning momentum has not yet reversed. In the EMA hierarchy, the price remaining below EMA20 indicates a weak short-term trend, while the longer-term EMA200 (around $0.02) stands as a distant target. The Supertrend being bearish shifts overall trend strength in favor of the downtrend and warns of sudden moves amid low volatility.

From an MTF perspective, despite the daily RSI being oversold, the weekly RSI is neutral in the 40s; this divergence increases short-term recovery potential. In the volume profile, selling volumes dominate, but exhaustion signs are present. Overall, while momentum is bearish, oversold conditions open the door to speculative buys – provided strong confluence is awaited.

Risk Assessment and Trading Outlook

The risk/reward profile is currently bearish-weighted: Bullish target $0.0115 (score 30) is low probability, while bearish target $0.0023 (score 22) appears more realistic. If the $0.0071 support holds, R/R could approach 1:2, but losses accelerate on a breakdown. Investors should monitor volatility via VET Spot Analysis and keep stop-losses tight. On the futures side, VET Futures Analysis carries high leverage risk; the overall outlook is cautious, with confirmation at $0.0071 required for long positions.

In a positive scenario, an oversold bounce could move to $0.0115, but it remains limited under BTC pressure. On the negative side, a $0.0071 breakdown could trigger chain reactions of selling. Given the market structure, a patient approach is forefront in this high-risk environment; confluence levels are key for trade setups.

Bitcoin Correlation

VET exhibits high correlation with BTC (%0.85+), directly impacted by the leading crypto’s downtrend; as BTC drops 13% to $63,148 testing $62,345 support, pressure on VET as an altcoin intensifies. BTC’s main supports are at $62,345, $59,260, and $48,362; if these fail to hold, selling in altcoins deepens. Resistances at $66,335, $70,325, and $73,244; with BTC Supertrend bearish, VET rallies remain limited. If BTC closes below $62k, VET accelerates toward $0.0071; a break above $66k brings relief – altcoin traders should closely track BTC dominance.