VeChain (VET) token price plunge 10% as foundation plans to float stablecoin VeUSD

VeChain (VET) token price plunge 10% as foundation plans to float stablecoin VeUSD

Key Takeaways:

  • VET price plunge 10% after reports that FEDs would reduce balance sheet.
  • More bearish outlook for VET ahead.

NIGERIA (CoinChapter.com) – VeChain Foundation, developers of VET token, began 2022 on a high note as they announced the launch of their native stablecoin called VeUSD. Despite this, VET has been under pressure over the past 24 hours after reports by the Federal Reserve revealed plans to reduce its balance sheet.

VeChain price dropped from its peak of $0.094 to $0.081 earlier on Thursday. The drop comes as investors are still trying to digest the unexplainable slump by VET from $0.010 towards the end of December to $0.0083, which it opened the new year with.

The coin had a relatively mixed 2021. In the first half of the year, it was one of the most popular cryptocurrencies in the world. As a result, its price jumped by 2,000% between January and May. The coin then went out of favor and dropped by about 70%. Its popularity in social media and Google searches also declined.

More bearish run for VeChain (VET) token ahead

According to technical indicators, VET has formed a symmetrical triangle pattern and is trading at the same point as the 25-day and 50-day moving averages. The MACD has remained slightly below the neutral line.

The coin looks set for a bearish breakout with its closest resistance level at $0.06, a 26% drop from its current price. However, the potential bearish run would be invalidated if VET moves above the resistance at 0.10.

More bearish run for VeChain (VET) token ahead
More bearish outlook for VET token ahead. Source: TradingView.com

VeUSD, a tool to unleash DeFi capabilities

VeChain Foundation’s set to launch stablecoin, VeUSD will be a tool to “unleash” DeFi capabilities for the VeChain ecosystem. According to the official post, the digital asset was designed following the core principles of this ecosystem: sustainability, versatility, scalability.

Months back, blockchain VeChainThor was upgraded after a community vote approved the implementation of Proof-of-Authority (PoA) 2.0. The upgrade was designed to mitigate any tradeoffs on the consensus layer for the blockchain VeChainThor.

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VeChain, VeChain (VET) token price plunge 10% as foundation plans to float stablecoin VeUSD

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