VeChain (VET) has endured a challenging six-month period, consistently posting red on its monthly charts. The altcoin’s price has plummeted by 91% from its all-time high, currently trading at $0.023. However, recent analysis suggests that a potential bullish reversal might be on the horizon.
Elliott Wave Theory Hints at Potential Upside
An analysis by EGRAG, a prominent analyst on X, points to a possible game-changing move for VeChain based on Elliott Wave Theory. This technical analysis method identifies recurring patterns in market prices, which can be used to predict future price movements.
According to EGRAG, VeChain is positioned to enter an impulsive Wave 3, a key phase within the Elliott Wave structure. This phase is often followed by a corrective Wave 4 and then a final Wave 5, which could lead to a significant price surge. The analysis suggests that these price movements could occur rapidly, with historical data indicating similar waves completing within approximately 150 days.
If VeChain follows what EGRAG calls Move A, the potential price targets are $0.91. However, a more ambitious Move B could lead to a price surge as high as $2.26.
Indicators Signal Mixed Momentum
While the Elliott Wave analysis suggests a potential bullish reversal, other technical indicators provide a mixed picture of VeChain’s current market conditions.
The Bollinger Bands reveal that VeChain has been trading near its lower band, indicating sustained bearish pressure. However, a slight narrowing of the bands hints at reduced volatility, suggesting a possible consolidation phase before a significant price move.
The Relative Strength Index (RSI) is currently reading around 43.53, showing weak bullish momentum. Having recently crossed above the 40-level, the RSI indicates a transition from bearish to neutral sentiment, which could signal an emerging shift in the market.
VeChain has faced significant challenges in recent months, but technical analysis suggests that a potential bullish reversal might be on the horizon. The Elliott Wave analysis points to a possible entry into an impulsive Wave 3, which could lead to a significant price surge. However, it’s important to note that technical analysis is not foolproof, and market conditions can change rapidly. Investors should conduct thorough research and consider multiple factors before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
