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VeChain (VET) drops 2.5%, nearing key technical levels that have triggered past rallies.
VeChain (VET) experienced a notable 2.5% decline over the last 24 hours, marking a critical moment as it touched the lower end of a price rally channel. This downward shift now positions VET near a key technical level that has historically signaled the onset of significant price increases.
According to expert analyst Egrag Crypto, the current pattern resembles earlier movements that led to massive gains in the token’s value. The analyst refers to this phase as the “Turbo Trigger,” highlighting its potential to push VET toward new highs.
VeChain Historical Patterns
Egrag Crypto points to VET’s past performance as a basis for current expectations. He notes that the token has previously seen explosive growth after reaching similar technical positions.
#VET Turbo Trigger (65X Potential):
Channel 1’s low end is officially tagged, and now I’m fully confident that #VET is about to hit the Turbo Trigger just like in the previous cycle! 🔥⚡
For a more conservative approach, I’ve calculated the measured move from the last cycle… pic.twitter.com/lj6gE5ruJN
— EGRAG CRYPTO (@egragcrypto) October 17, 2024
One marker identified by Egrag is the “Ignition Stage,” during which VET has consistently rebounded from the lower ends of its price channels. In one notable cycle beginning in 2020, VET surged by 6,538%, adding $0.19888 to its price before reaching a peak.
The analyst’s current projection comes from him factoring this historical price cycle and applying it to the June 2023 low. By using Fibonacci retracement levels, Egrag identifies a potential price target around the $1 mark.
Notably, if VeChain (VET) reaches $1 from its current price of $0.0226, it would represent a percentage increase of approximately 4,324%.
Risk Management Strategy
While a member of the crypto community has proposed selling VET at intermediate price levels, such as $0.50, and re-entering the market after a retracement, Egrag presented a cautious response.
The analyst advises that while such a strategy might succeed, it carries the risk of missing out on a continued price surge. He suggests considering holding a larger portion of their VET investment while engaging in smaller trades to mitigate potential losses from unexpected market moves.
Previous Prediction
This is not the first time VET has been predicted to reach higher price levels. In September 21, the same analyst suggested that VeChain was positioned to enter a new impulsive wave, based on Elliott Wave Theory. The theory, which tracks market cycles in five-wave patterns, indicated that VET was nearing the critical third wave.
Historically, this phase has been followed by a corrective fourth wave and then a final fifth wave, leading to a significant price increase. During that period, potential price targets ranged from $0.91 to $2.26, almost similar to the current outlook. However, as of today, VET is trading at $0.0226, reflecting a 3.76% increase over the past week.