The cryptocurrency market opened the new weekly candle bearish as Bitcoin temporarily dropped to the $93k level.
This affected the performances of major altcoins, including VeChain (VET).
VET is down nearly 3% in the last 24 hours despite a major development within the VeChain ecosystem.
Risk-off sentiment has pushed investors to the sidelines in recent weeks, with further downward movement expected in the near term.
VeChain mainnet upgrade shifts consensus mechanism from PoA to DPoS
VET is down nearly 3% in the last 24 hours and is now trading at $0.01530 per coin.
The bearish performance comes despite VeChain announcing on Friday that it had migrated its mainnet from Proof of Authority (PoA) to Delegated Proof of Stake (DPoS), ushering in a new era of growth for the network.
The change in consensus will occur during the upcoming Hayabusa upgrade.
According to the VeChain team, this major upgrade will fuel the network’s next phase of growth without compromising the predictable costs and features that real-world users rely on.
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In addition to that, the upgrade will enable VET holders to participate by staking and delegating to network validators.
It also improves security and centralisation without affecting the vital feature of predictable fees.
“Token holders gain a direct role in security and rewards, Node operators compete on performance and trust, while businesses and builders keep the predictable costs that make consumer-grade experiences possible,” VeChain added.
VET could dip below $0.013 as the broader market remains bearish
The VET/USDT daily chart is bearish and inefficient as VeChain has failed to recover since the October 10 liquidation event.
At press time, VET is trading above $0.0150, reflecting negative sentiment in the broader cryptocurrency market.
It is currently trading below key moving averages, including the 50-day Exponential Moving Average (EMA) at $0.0182, the 100-day EMA at $0.0203, and the 200-day EMA at $0.02289.
Thus, indicating that the token is extremely bearish at the moment.
The Relative Strength Index (RSI) is at 41 on the daily chart, indicating a bearish trend.
If the RSI continues to decline, VET could enter the oversold region soon.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator is within the negative territory, suggesting a bearish trend.
If the MACD lines remain within the bearish zone, investors could reduce exposure to the token, which can drive selling pressure.
If the bearish trend continues, VET could lose 15% of its value in the near term and retest the $0.0132 low over the coming hours or days.
However, if the market conditions improve, VET could recover towards the $0.0188 resistance level.
Currently, the market conditions are bearish and favour downward movement in the near term.
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