Can VeChain (VET) Escape Its Bubble Cycle? Traders Eye Critical $0.02–$0.03 Range

Sean Williams
VeChain (VET)

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  • VeChain’s bubble risk index at 0.938 indicates bearish pressure.
  • Historical spikes in the index often precede sharp rallies and corrections.
  • The $0.02–$0.03 price zone is pivotal for VET stability or further downside.

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VeChain’s native token, VET, is signaling caution for traders as its short-term bubble risk index records a bearish 0.938. The metric, designed to track unsustainable price expansions, indicates growing pressure on VET’s ability to maintain upward momentum. Investors familiar with VeChain’s historical price cycles may find the latest reading a crucial signal to reassess positions.

Bubble Risk Indicator: What It Means for VET

The short-term bubble risk index measures the likelihood of rapid, unsustainable price growth. Historically, higher readings above 1.25 have coincided with sharp rallies followed by steep corrections. VeChain’s peak in 2021, when the index exceeded 2.0, is a prime example: VET surged near $0.20 before plummeting, reflecting the market’s vulnerability to overextension.

Currently, with the index just below 1.0, the reading leans bearish. Values between 0.75–1.0 in the past have often preceded sideways price movement or gradual declines, suggesting that buyers may encounter mounting resistance in sustaining rallies above $0.03.

Price Behavior and Historical Patterns

VeChain’s price history demonstrates a consistent correlation with bubble risk spikes. The July 2020 rally saw the index cross 1.50, triggering a sharp advance toward $0.04. Similarly, VET’s 2021 highs corresponded with extreme bubble risk levels, followed by a prolonged correction into 2022.

In the current cycle, VeChain continues to hover under $0.03, with repeated short-lived surges. Each uptick aligns with minor increases in bubble risk, indicating the token’s persistent sensitivity to this market gauge.

Also Read: VeChain Price Prediction: Can VET Hit $1 After Hayabusa Upgrade?

Market Outlook: Stability or Further Decline?

Traders remain cautious as the 0.938 reading hints at potential challenges for continued upward momentum. If bubble risk exceeds 1.25, historical trends suggest possible rapid rallies followed by heavy pullbacks. Conversely, a drop toward 0.5 could signal market consolidation, providing a more stable environment for buyers.

VeChain’s behavior in the $0.02–$0.03 range will be critical. The key question remains: can VET break the historical cycle of rising bubble risk leading to sharp corrections, or will past patterns repeat?

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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