VeChain, currently priced at $0.041, has experienced a significant decline of nearly 20% in the past week. However, a well-known analyst suggests that if VeChain follows its trading pattern from four years ago, there is a possibility of a 1,360% surge in its value.
Before this surge can occur, the price of VeChain would need to retrace even further to reach $0.32, which marks the upper boundary of its current trading consolidation pattern. Once this level is surpassed, the coin is expected to break out and potentially experience substantial growth.
The cryptocurrency market as a whole has been facing challenges over the past ten days. Ethereum, for example, dropped to $3,000 after reaching a high of $3,700. Bitcoin is also struggling to stay above $65,000, with its halving event approaching in just ten hours.
VeChain has not been immune to these challenges, but according to the analyst, there is still hope for a significant increase in value. At the time of writing, VeChain is trading at $0.04105, showing a gain of 6.52% in the past day. Among 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, reflecting the overall market downturn that resulted in a loss of over $400 billion. On April 15, VeChain experienced a spike from $0.036 to $0.0469, but the market quickly shifted, and the downward trend continued.
VeChain reached a one-month high of $0.05046 on April 12, but as the weekend arrived, it fell victim to the broader market decline.
However, despite these challenges, the analyst remains optimistic about VeChain’s future. They believe that the coin has the potential to surge by 1,400%. They draw comparisons to a previous price pattern observed in the latter half of 2020.
From June to December 2020, VeChain’s price consolidated in the $0.01-$0.02 range, suggesting a stable period. However, at the beginning of the following year, VeChain experienced a bull rally that propelled its price to $0.2782 in mid-April 2021, marking a surge of 1,290% and its highest price to date.
The analyst notes that VeChain has been consolidating in a similar range for over 18 months now. Although the coin broke out of this pattern in February this year, it was unable to sustain the momentum. As a result, the price was pulled back, and it currently hovers just above the upper boundary trendline of the pattern.
This current pattern closely resembles the one observed in 2021. After being briefly pulled back to the edge of its consolidation pattern, VeChain found support at the upper trendline and skyrocketed to new highs.
To replicate this pattern, VeChain would need to experience another dip, bringing its price down to $0.032, a 22% decrease from its current value. However, this dip is expected to be short-lived, as the coin will then embark on a bull rally that could drive its price to $0.60, marking a new all-time high and a surge of 1,360% from its current price.