The Cardano and VeChain prices have slipped as part of the sell-off of cryptocurrencies. ADA has dropped by more than 15.23% in the past 24 hours while VeChain has fallen by more than 22%. The two popular coins have a total market capitalization of more than $47.9 billion and $6.9 billion, respectively.
VeChain and Cardano in a freefall
There is a close correlation between the price of Bitcoin and that of altcoins. In most cases, when Bitcoin prices fall, it is usually accompanied by a sharper decline of other coins. This price action is usually because most altcoins are usually held by retail traders as a proxy for Bitcoin. This is the main reason why VeChain and Cardano prices are slumping today.
For starters, Bitcoin price has fallen today because the Federal Bureau of Investigation (FBI) managed to hack the hackers who attacked Colonial Pipeline. The bureau managed to recover about 85% of the Bitcoins that Colonial paid the hackers.
By so doing, the bureau challenged the popular view that cryptocurrencies like Bitcoin is untraceable and anonymous. Like I wrote before, the situation would have been different had the hackers requested privacy-based coins like Monero and Dash.
Cryptocurrencies are also falling because demand seems to have waned after they struggled to move above a key level of resistance. For example, Bitcoin struggled to find enough buyers above $39,000 while VeChain failed to find buyers above $0.1520. So, what next for the two coins?
VeChain price technical forecast
In my last article on VeChain price, I wrote that the coin was bound to jump by another 26% jump to $0.1754. This prediction failed to materialize as the price declined sharply.
Today, looking at the four-hour chart, we see that the coin has fallen substantially in the past few sessions. Most importantly, it has moved below the lower line of the ascending wedge pattern. It has also dropped below the 23.6% Fibonacci retracement level. Notably, it seems like it has formed a head and shoulders pattern, which is usually a bearish sign.
Therefore, in the near term, I suspect that this sell-off will continue as bears target the next key support at $0.09278. Any drop below that level will open the possibility of the VET price falling to the May 21 level of $0.06830. On the flip side, a jump above $0.01250 will invalidate this trend.
Cardano price technical analysis
In my previous article on Cardano price, I said that I was cautiously optimistic on the coin. This caution was warranted since the coin has tumbled to the lowest level since May 29th. On the four-hour chart, the coin seems to be forming an inverted cup and shoulders pattern, which is usually a bearish signal. Like VeChain, I can’t rule out further declines in the next few sessions.