VeChain Faces Pressure With 0.938 Risk Value and $0.02–$0.03 Zone

VeChain short term bubble risk stands at 0.938 as price action remains below $0.03 range.

The $0.02 to $0.03 area is a critical range where risk index shifts can drive strong reactions.

Past cycles show risk above 1.25 sparks rallies while below 0.5 often signals extended consolidation.

VeChain’s VET token shows a bearish reading on its short-term bubble risk index, with the latest value recorded at 0.938. The metric suggests rising pressure on price sustainability and reflects historical patterns of market peaks and corrections.

Bubble Risk Indicator Explained

The short-term bubble risk index tracks the likelihood of unsustainable price expansion. Higher values often point to overheating conditions, while lower levels suggest reduced risk.

The chart highlights that when bubble risk exceeded 1.25, VeChain frequently experienced rapid rallies followed by sharp declines. This was evident in 2021, when risk surpassed 2.0 as VET peaked near $0.20 before dropping significantly.

Currently, with the index near 0.938, the reading leans bearish. Historical data shows that values between 0.75–1.0 often precede either sideways trading or gradual declines. This indicates that buyers may face increasing difficulty maintaining upward momentum.

Price Behavior and Historical Context

Since mid-2018, VeChain’s price has demonstrated clear links between bubble risk spikes and volatility events. For example, the July 2020 surge corresponded with bubble risk crossing 1.50, leading to an aggressive rally toward $0.04.

The most notable case occurred in 2021, when VET’s value touched nearly $0.25. During that period, bubble risk moved above 2.0, placing the market in extreme overextension. This was followed by a steep correction lasting through 2022, where the index dropped below 0.5.

In the current cycle, VeChain’s price hovers below $0.03, with repeated short-lived rallies. Each uptick has aligned with bubble risk increasing into the 1.0–1.25 range, showing consistent sensitivity between the indicator and price action.

Market Outlook and Key Question

The latest bearish reading of 0.938 raises caution among traders. Although it remains below the danger threshold of 1.25, the trend suggests growing resistance against significant upward movement.

If bubble risk climbs past 1.25, history indicates potential for rapid rallies followed by heavy pullbacks. Conversely, if the index slides closer to 0.5, the market may enter a consolidation phase that provides stability for buyers.

Traders watch closely how VeChain reacts near the $0.02–$0.03 zone, where bubble risk levels often shift quickly. This range could define whether the token stabilizes or faces further downside.

The pivotal question is whether VeChain can break the cycle of rising bubble risk leading to sharp corrections, or if historical patterns will repeat once more.