Saturday, May 25, 2024
HomeCryptocurrencyVeChain (VET) to $0.6? Analyst Spots Fractals For Massive Rebound, With Timeline

VeChain (VET) to $0.6? Analyst Spots Fractals For Massive Rebound, With Timeline

Crypto analyst Ali Martinez has identified a technical indicator suggesting a significant upswing for VeChain (VET). This indicator, a recurring fractal pattern on the 1-month chart, has historically preceded substantial price increases for VET.

While VeChain has experienced a decline in recent weeks, currently trading at $0.0359, the long-term outlook appears bullish. This is especially intriguing considering VET’s over 80% drop from its all-time high of $0.2798.

Read Also: Citing Echoes from 2017, Analyst Says XRP Is Bracing For 4,400% Rally to $27, States Key Resistances

Fractal Patterns Signal Bullish Rebound

The crux of Martinez’s analysis hinges on the presence of fractal patterns on the VeChain monthly chart. Fractals are geometric shapes that exhibit self-similarity, meaning their smaller parts resemble the whole. In the context of technical analysis, these patterns can sometimes indicate repeating price movements.

Historical data reveals a similar fractal pattern preceding a significant price rally in 2020. During the bear market of late 2018, VET endured five consecutive months of decline. However, a fractal pattern emerged in November 2018, persisting for 19 months. This period witnessed intermittent price fluctuations before a breakout in July 2020.

This breakout ushered in a period of substantial growth for VET, coinciding with the broader 2021 bull run. The price eventually surged to its all-time high of $0.2664 in April 2021, representing a remarkable 2,907% increase in just nine months.

Interestingly, a comparable fractal pattern materialized in June 2022, following a 31% price drop for VET. This pattern also spanned 19 months, culminating in a 69% monthly gain for VET in February 2024.

Analyst Projects Price Target of $0.60

Based on the historical correlation between the fractal pattern and subsequent price rallies, Martinez anticipates a similar upswing for VET in the coming months. His analysis, incorporating the identified chart pattern, projects a price target of $0.60 for VET. This translates to a potential increase of over 1,565% from the current price.

Supporting Indicators Bolster Bullish Outlook

Several additional factors bolster the bullish sentiment surrounding VeChain. Firstly, on-chain data from Coinglass indicates a sustained trend of VET withdrawals from exchanges. This trend typically signifies reduced selling pressure, as investors move their holdings to private wallets, potentially with a long-term view.

Read Also: Analyst Who Accurately Called 2018 Bitcoin Bottom Says Solana (SOL) Massive Surge Is Coming

Secondly, rising bullish sentiment is reflected in the increasing Open Interest (OI) for VET futures and derivatives contracts.  Furthermore, the long/short ratio has climbed to 1.02 within the same period, suggesting a dominance of optimistic positions among market participants.

<

While past performance does not indicate future results, the emergence of a recurring fractal pattern on the VeChain monthly chart presents an intriguing possibility for investors.

The confluence of on-chain data and rising bullish sentiment further strengthens the case for a potential price surge in the foreseeable future. However, as with any investment, conducting thorough research and maintaining a risk management strategy is crucial.


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
RELATED ARTICLES

Latest News & Articles