VeChain, a prominent blockchain platform known for its sustainability initiatives, could be on the brink of a major breakthrough, according to an analyst. The analyst points to the similarities between VeChain’s current trading pattern and its previous cycles as evidence of a potential rally in the near future.
Despite a slight dip below $0.038, Coincodex predicts that VeChain will experience a marginal recovery after a mid-month drop. While VeChain often doesn’t compete with other major cryptocurrencies on the price charts, an analyst believes that this could change soon.
Currently trading at $0.04194, VeChain has gained just over 1% in the past day, with a notable 16% increase in trading volume. This remarkable feat occurred over the weekend. Over the past week, VeChain has seen a 3% gain, with a mid-week dip that hit a low of $0.037. Its performance in the past month has been relatively average, with sideways trading interrupted by occasional spikes that were not sustainable. However, year-to-date, the token has experienced a 23.6% increase.
According to analyst Ali Martinez, VeChain is poised for a surge in the near future. He compares the current trading patterns to the previous bull rally of the token. In the 595 days leading up to June 2020, VeChain was stuck in a consolidation pattern, with unsuccessful attempts to break out. Despite skepticism, the token broke free from the pattern in June. The initial breakout was unsustainable, leading to another dip. However, this dip was quickly reversed, with the upper trendline of the consolidation pattern serving as strong support. VeChain then embarked on another bull run, reaching a high of $0.25.
After reaching new highs, VeChain experienced a significant dip and has since been trapped in a similar consolidation pattern for over 650 days. However, it recently managed to break out of this pattern, albeit briefly. Similar to the previous cycle, the upward trend was short-lived. VeChain successfully reversed the dip and is now trading above the consolidation pattern, utilizing the upper trendline as support.
Martinez believes that this pattern confirms that VeChain is going through the same process and price trend as it did in 2020 and will soon experience another breakout. The analyst predicts that VeChain could surge to as high as $0.6 in the current bull run, representing a gain of over 1,300%.
Unlike previous cycles, VeChain’s fundamentals are now stronger than ever. The platform has formed partnerships with renowned institutions such as the Boston Consulting Group, Mercedes Benz, and the United Nations. These partnerships have resulted in various initiatives related to trade, sustainability, and retail. With such strong fundamentals, VeChain is well-positioned for future growth.
In conclusion, VeChain, with its potential for a breakout and its strong partnerships, is gaining attention in the cryptocurrency market. Analysts are optimistic about its future performance, projecting significant gains in the coming months.
