VeChain, the blockchain platform known for its sustainability initiatives, may be on the cusp of a significant breakthrough, according to an analyst. Despite a recent dip, the analyst sees parallels between VeChain’s current trading pattern and previous cycles, suggesting a potential rally in the near future.
Coincodex, on the other hand, predicts a slight decline for VeChain, with the token potentially falling below $0.038. However, it should be noted that VeChain has experienced a modest recovery in the past week after a mid-month dip.
While VeChain has not traditionally competed with other major cryptocurrencies on price charts, the analyst believes the situation could change soon. Currently trading at $0.04194, VeChain has gained over 1% in the past day, accompanied by a noteworthy 16% increase in trading volume, a remarkable feat for a weekend.
In the past week, VeChain has seen a 3% gain despite a dip earlier in the week that brought it down to $0.037. Over the past month, the token has traded sideways with a few temporary spikes that were ultimately unsustainable. However, year-to-date, VeChain has experienced a 23.6% increase.
Analyst Ali Martinez is optimistic about VeChain’s future, suggesting that the token is poised for a surge. Martinez compared VeChain’s current trading patterns to its previous bull rally, which occurred over a period of 595 days leading up to June 2020. During this time, VeChain was stuck in a consolidation pattern, but eventually broke out in June. While the first attempt to break out was short-lived, VeChain quickly rebounded, finding strong support from the upper trendline of the consolidation pattern. This support propelled VeChain to reach new highs of $0.25.
After reaching these highs, VeChain experienced a significant dip and has since been caught in a similar consolidation pattern for over 650 days. However, it recently broke out of this pattern, albeit briefly, before the upward trajectory was halted. Similar to the previous cycle, VeChain managed to reverse the dip and is now trading above the consolidation pattern, using the upper trendline as support.
According to Martinez, this pattern indicates that VeChain is undergoing a similar process and price trend as it did in 2020, suggesting an imminent breakout. The analyst believes VeChain could surge as high as $0.6 in the current bull run, representing a potential gain of over 1,300%.
What sets this cycle apart from previous ones is that VeChain’s fundamentals are stronger than ever. The platform has garnered partnerships with esteemed institutions such as the Boston Consulting Group, Mercedes Benz, and the United Nations. These collaborations span various sectors, including trade, sustainability, and retail, further solidifying VeChain’s position in the blockchain industry.
In conclusion, VeChain is poised for a potential breakout, with an analyst projecting a significant rally in the near future. Despite a recent dip, VeChain’s current trading pattern suggests a parallel with previous cycles, giving rise to optimism among investors. With its strong fundamentals and notable partnerships, VeChain is well-positioned to make a mark in the blockchain industry.
