VeChain, currently trading at $0.041, has experienced a significant drop of nearly 20% in the past week. However, an analyst predicts that if it follows its trading pattern from four years ago, the coin could potentially spike by 1,360%.
Before experiencing this surge, VeChain would first need to retrace even further to reach $0.32, which is the upper limit of its current trading consolidation pattern.
The cryptocurrency market has been challenging in the last ten days, with Ethereum dropping to $3,000 after reaching a high of $3,700. Additionally, Bitcoin struggles to stay above $65,000, especially with its halving only ten hours away.
VeChain has also faced its fair share of losses, but according to the analyst, it has the potential to increase by over 1,300% in the coming months if it continues to mimic its trading pattern from four years ago.
At present, VeChain is trading at $0.04105, with a gain of 6.52% in the past day. Out of the 36 projects ranked above it, only Uniswap, Internet Computer, and Toncoin have recorded higher gains within the same period.
Despite a recent rally, VeChain has lost 18% of its value, which is consistent with the overall market downturn that resulted in a loss of over $400 billion. On April 15, VeChain experienced a brief surge from $0.036 to $0.0469, but the market quickly turned bearish, leading to a downward trend from Tuesday until today.
VeChain reached its highest point in a month on April 12, hitting $0.05046. However, as the weekend approached, it succumbed to the broader market decline.
Despite the recent market gloom, an analyst believes that VeChain has the potential to rise by 1,400%. Ali Martinez shared on X that the current market patterns resemble the price pattern VeChain exhibited in the latter half of 2020.
From June to December 2020, VeChain’s price consolidated within the range of $0.01 to $0.02. However, at the start of the following year, it entered a bull rally that resulted in a surge to $0.2782 in mid-April 2021, marking a 1,290% increase, which remains its highest price to date.
Martinez points out that VeChain has been consolidating within a similar range for over 18 months now. While the coin broke out of this pattern in February this year, it didn’t sustain the momentum and was eventually pulled back. Currently, it sits just above the upper boundary trendline of the pattern.
This mirrors the same pattern observed in 2021. After a slight pullback to the edge of its consolidation pattern, VeChain used the upper trendline as support and skyrocketed to new highs.
To replicate this pattern, VeChain would need to dip one more time and reach $0.032, representing a 22% drop from its current price. However, this dip would be short-lived, and the token would then embark on a significant bull rally, driving its price to $0.60, marking a new all-time high and a surge of 1,360% from its current price.