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- VeChain could be on the verge of a breakout, one analyst projects, pointing to the symmetry between its current trading pattern and previous cycles.
- Meanwhile, Coincodex foresees VeChain dipping slightly to dip below $0.038 despite a marginal recovery over the past week to reverse a mid-month dip.
VeChain features prominently whenever blockchain adoption is brought up, with its initiatives in sustainability setting an industry standard. However, VET rarely competes with other major cryptos on the price charts. However, one analyst believes that VeChain could be setting up for a significant rally in the near future.
VET currently trades at $0.04194, gaining just over 1% in the past day amid a 16% rally in trading volume, a remarkable fete for a weekend.
VET gained 3% in the past week amid a mid-week dip that bottomed at $0,037. Its performance in the past month has been average, trading sideways with the exception of a few spikes that proved unsustainable. Year-to-date, the token has gained 23.6%.
However, this could all change, says analyst Ali Martinez.
VeChain to Surge
Ali told his X followers that he expects VeChain to surge soon and hit new records. The analyst compared the token’s current trading patterns to its previous bull rally.
In the 595 days to June 2020, VET was trapped in a consolidation pattern, with every attempt to break out sniffed out. Many wrote the token off, but it broke off from the pattern in June. The first attempt to break out proved unsustainable, and VET dipped again. However, the dip was quickly reversed, with the upper trendline of the consolidation pattern proving to be strong support.
As shown in the graph below, VET used the support to mount another bull run, this time reaching as high as $0.25.
After hitting the new highs, VET dipped significantly and has now been caught up in a similar consolidation pattern for over 650 days. However, recently, it managed to break out of the pattern, albeit briefly. Just like in the previous cycle, the upward trajectory was sniffed out.
VET managed to reverse the dip and use the upper trendline as support, as shown above and is now trading above this consolidation pattern.
According to Martinez, the pattern is proof that VET is undergoing the same process and price trend that it went through in 2020 and will break out soon. The analyst believes it could surge as high as $0.6 in the current bull run, which would be over 1,300% in gains.
Unlike in previous cycles, this time, VeChain’s fundamentals are stronger than ever, with some of the world’s most prominent institutions now building blockchain solutions on the network. VeChain has partnered with the likes of the Boston Consulting Group, Mercedes Benz, the United Nations and more on initiatives spanning trade, sustainability, retail and more.