VeChain (VET) shows signs of a potential downturn after recently reaching three-month highs. Trading flow and technical signal analysis indicate possible selling from institutional traders.
Technical Analysis and Possible Downtrend
VeChain is demonstrating evidence of possible downside movements after technical rejection at the resistance level of 0.023-0.024. According to Smart Money Concept (SMC) analysis, the token has just swept through recent three-month highs and then sharply turned around, suggesting a high probability of a bull trap, as institutional traders are starting to offload.
Decline in Trading Volume
Recent data reveals that VET's trading volume has declined by 27.91%, indicating a low level of market activity and a lack of momentum. The current price of VET is $0.0223, with only a slight 0.03% intraday increase. The reduced trading volume points to heightened caution among traders.
Fundamental Metrics and Market Situation
VeChain's market capitalization stands at $1.91 billion, with a circulating supply of 86 billion VET. The fully diluted valuation also matches the market cap. Currently, VeChain provides solutions for supply chains using IoT technologies, but short-term technical signals suggest caution until signs of market strength re-emerge.
Given the current market conditions and signals from smart money, VeChain (VET) may face correction in the near term. Investors are advised to stay vigilant and refrain from making hasty decisions.
