The cryptocurrency market has faced a sharp decline following the U.S. President’s executive order initiating new tariff wars. This move has triggered global economic uncertainty, leading to a 3.49% pullback in the crypto market. Among the affected assets, VeChain’s (VET) token price plummeted by 7.79% on April 2, raising concerns over a potential further drop.
VeChain Price Analysis: A Falling Wedge Formation
On the daily chart, VeChain’s price action reveals a falling wedge pattern, a setup often leading to a bullish breakout. However, the prevailing bearish sentiment, fueled by macroeconomic instability, suggests a prolonged correction could be imminent.
Currently, VET is testing the $0.020 support level within the wedge, with the S1 pivot support at $0.021 providing temporary relief. A brief 1.09% intraday recovery has lifted VET’s price to $0.021831, yet the diminishing bullish momentum indicates a likelihood of further downside pressure. The daily RSI also suggests weakening bullish strength, as it hovers just above the oversold boundary.
VeChain Network Sees Strong Growth Despite Price Decline
Despite price volatility, the VeChain network continues to expand. In Q1 2025, active accounts surged from 9,000 to a three-month high of 74,491. As of April 2, the network maintains 37,114 active accounts, signaling steady engagement from users and enterprises alike.
This network growth highlights VeChain’s resilience in the face of broader market downturns. Additionally, the network’s recent acquisition of the MiCAR license in European markets is expected to boost enterprise adoption across the region.
Analyst Outlook: A Bullish Future for VET?
Crypto analyst Michael van de Poppe has highlighted VeChain’s upcoming “Renaissance” launch in July 2025, which will introduce an updated tokenomics structure and a new utility model. These changes could significantly enhance VeChain’s adoption and drive long-term value.
With governance proposals also set for Q2 2025, improving staking rewards and network incentives, analysts foresee a bullish breakout. If VET rebounds from its current levels, the token could test the $0.01820 support before targeting the $0.030 resistance level.
$VET keeps on delivering.
— Michaël van de Poppe (@CryptoMichNL) April 1, 2025
– Renaissance going live in July '25.
– MiCAR license obtained to service European enterprises.
– Governance proposal updates throughout Q2.
Improved tokenomics and staking rewards for participants within the VeChain ecosystem. pic.twitter.com/mp6MTkzaMm
While short-term bearish sentiment persists, VeChain’s network developments and upcoming fundamental upgrades present a promising outlook. Traders should watch key support levels closely, as a bullish breakout from the falling wedge could signal a significant price recovery in the coming months.
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.
Also Read: VeChain News: B3TR Token Goes Live on Bybit—A Major Milestone for VeBetterDAO
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
