VeChain (VET) has recently faced significant downward pressure, with its price dropping by 7.79% on April 2, 2025, amidst growing concerns over the US's escalating tariff conflicts. This pullback is part of a broader 3.49% decline in the cryptocurrency market, driven by global economic uncertainty following the US President's executive order to initiate tariff wars. As VeChain's price struggles to maintain momentum, analysts are speculating whether the $0.018 support level will hold.

**VeChain Price Action Analysis**

A closer look at the daily chart reveals that VeChain is currently caught in a *falling wedge* pattern. This technical setup typically signals a potential bullish breakout, though the ongoing bearish pressure complicates matters. VET’s price is encountering resistance near the upper trendline of the wedge, indicating a bearish reversal in the short term.

At present, the price is approaching the $0.020 support level within the wedge, and according to the pivot point indicator, the first support (S1) level at $0.021 is holding the price. However, the increase in supply pressure raises concerns about a potential further drop to the $0.018 level.

Despite a brief 1.09% recovery on April 2, VET’s overall bullish momentum appears to be weakening. The *Relative Strength Index* (RSI) is hovering just above the oversold zone, suggesting that the short-term upward momentum may be losing steam. Consequently, the possibility of a further correction remains high.

**VeChain Network Performance Shows Recovery**

While VeChain’s token price is under pressure, the underlying network has shown notable improvement. In the first quarter of 2025, active accounts on the VeChain network surged from 9,000 to a three-month high of 74,491. As of April 2, 2025, the network boasts 37,114 active accounts, reflecting a steady recovery.

**Analysts Highlight Future Potential for VeChain**

Michael van de Poppe, founder of MNConsultancy, predicts a positive outlook for VeChain, citing several key developments. The network’s upcoming *Renaissance* launch, scheduled for July 2025, is expected to bring significant updates to VeChain’s tokenomics and introduce a new use case, which could spur further adoption. The launch of updated tokenomics, coupled with the acquisition of the *MiCAR license* in the European market, is likely to drive growth, especially among European enterprises.

Additionally, governance proposals slated for Q2 2025 aim to enhance rewards for participants within the VeChain ecosystem, further incentivizing involvement.

**Price Forecast: Can VeChain Reach $0.030?**

While VeChain is currently experiencing a period of volatility, both technical analysis and upcoming fundamental updates suggest a potential for bullish movement in the future. In the short term, the price may continue to fluctuate within the *falling wedge* pattern, possibly touching the S2 support level at $0.01820. However, if a breakout occurs, VET could challenge resistance at the $0.030 psychological mark.

In conclusion, $VET Chain’s price action remains influenced by broader market trends, but the network’s promising developments could lay the groundwork for a potential rally in the coming months

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