VeChain, currently valued at $0.041, has experienced a significant decline 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 see a massive spike of 1,360%. Before this surge, VeChain would need to retrace even further to reach $0.32, which is the upper boundary of its current trading consolidation pattern.
The cryptocurrency market as a whole has been struggling in recent days, with Ethereum dropping to $3,000 after reaching a high of $3,700. Bitcoin, with its halving event just hours away, is also struggling to stay above $65,000. VeChain has not been immune to these market conditions, but according to the analyst, it has the potential for significant growth if it continues to mirror its trading pattern from four years ago.
At the time of writing, VeChain is trading at $0.04105, showing 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 in the same period.
Despite the 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. The cryptocurrency experienced a brief comeback on April 15, when it spiked from $0.036 to $0.0469. However, the market quickly turned bearish, and VeChain has been on a downward trend since Tuesday.
On April 12, VeChain reached a one-month high of $0.05046, but it was unable to sustain this price level as the broader market experienced a downturn.
Despite the recent market pessimism, one analyst believes that VeChain could see a surge of 1,400%. Ali Martinez suggests that the current market patterns resemble the price pattern VeChain exhibited in the latter half of 2020. During that time, VeChain consolidated in the $0.01-$0.02 range for several months before embarking on a bull rally that led to a 1,290% increase, reaching a high of $0.2782 in mid-April 2021.
Martinez points out that VeChain has been consolidating in a similar range for over 18 months now. In February of this year, the coin briefly broke out of this pattern but was ultimately pulled back and is currently trading just above the upper boundary trendline of the pattern.
To replicate the previous pattern, VeChain would need to experience another dip and reach $0.032, representing a 22% decrease from its current price. However, this dip would be short-lived, and the token would then embark on a bull rally that could push its price to a new all-time high of $0.60, a surge of 1,360% from its current price.