VeChain's 1.30% Price Decline to $0.01544: Key Takeaways for September 3, 2023

VeChain's VET token has seen a 1.30% price decline over the past 24 hours, with the price decreasing from $0.01563 to $0.01544. Though a minor daily decline, this continues a downward price trend for VET over the past month and half year.

VET currently ranks #17 among cryptocurrencies by market capitalization, which stands at $1.13 billion. Trading volume over the past 24 hours was $14.34 million, showing reasonably strong interest in trading the token.

Short term price action shows VET declining 0.01% over the past hour. Zooming out further, VET has dropped 3.10% over the past 7 days. The declines get steeper looking at the monthly and 6-month timeframes, with VET down 14.54% over the past month and 39.28% over the past 6 months.

What's Behind the Recent VeChain Declines?

VeChain faces some headwinds that help explain its recent price weakness. As a supply chain focused blockchain project, VeChain is more exposed to global economic conditions than other cryptocurrencies like Bitcoin. With many analysts predicting a worldwide recession ahead, the demand outlook for supply chain solutions like VeChain appears uncertain in the near term.

Additionally, crypto markets in general have struggled in 2022 amidst rising interest rates and risk-off investor sentiment. Due to its smaller size and niche use case, VeChain tends to underperform major cryptocurrencies like Bitcoin and Ethereum during broad market declines. Its correlation to these major crypto assets means VET often falls harder than them.

However, a case can be made that VeChain's fundamentals remain strong despite its falling price. The project continues onboarding new enterprise customers and partners, demonstrating real-world demand for its supply chain solutions. Once global growth stabilizes and crypto markets regain positive momentum, VeChain could be poised to outperform.

What's Next for VeChain? Key Levels to Watch

Looking ahead, VET bulls will try to stabilize and reverse the multi-month downtrend. Support around the current $0.015 level has held for now, but VET remains in a precarious position.

If $0.015 breaks down, the next major support areas to watch are around $0.0125 and $0.01. On the upside, VET needs to break back above short term resistance around $0.0175 to signal a potential trend change.

Zooming out to the weekly chart, VET is approaching long term support in the $0.01 to $0.012 area. This range marks multi-year lows from VeChain's early trading history. Bulls will try to defend this zone and prevent a capitulation-type breakdown.

On the fundamental side, traders will watch for renewed enterprise adoption and real-world use of VeChain's blockchain. Major partnerships and integrations would demonstrate VeChain's long term viability and could catalyze upside momentum when crypto markets stabilize.

Price Prediction Through September 2024

Given VeChain's current technical weakness but long term potential, a likely scenario over the next year is continued consolidation between approximately $0.01 and $0.03. Near term downside below $0.01 can't be ruled out, but appears limited barring a collapse in crypto markets.

Upside beyond $0.03 looks unlikely before 2024, barring massive positive news such as a revolutionary enterprise partnership. Oncegrowth stabilizes in 2023, VeChain could embark on a new uptrend in 2024 with a return to its all-time high around $0.25 possible by September 2024. Patience will be key for long term VET holders.

Is VeChain a Good Long Term Investment?

For investors with a time horizon of 3-5 years, VeChain appears a solid long term investment at current prices around $0.015. The project's real-world adoption and partnerships give it viable staying power despite its heavy sell-off.

Once crypto markets turn around, VET's upside could be substantial due to its collapsed valuation. Of course, risks remain around adoption and competition from other supply chain focused blockchains. But at a sub-$1 billion market cap, much of this risk appears priced in. Long term investors could consider accumulating VET during periods of extreme fear like the current environment.

Can VeChain Recover to Its All Time High?

Given crypto's high volatility and VeChain's promising technology, a recovery to VET's all-time high around $0.25 looks achievable within the next 3-5 years.

For this to happen, VeChain needs to continue expanding partnerships and enterprise integration of its blockchain. Crypto markets as a whole also need to turn around and enter a new bull cycle. If both these conditions are met, VET regaining its former highs looks reasonable based on historical price action.

Of course, risks remain, and VET may fail to recover its former highs if adoption stalls or new competitors emerge. But at current prices, VeChain offers a favorable risk/reward proposition for investors comfortable with crypto volatility. Accumulating VET during bear markets could pay off handsomely in the next bull cycle.