VeChain (VET), a blockchain platform designed to enhance supply chain management and business processes, has faced significant downward pressure in recent months. The altcoin’s performance has been consistently bearish, leading many investors to question whether there is any potential for recovery.
However, recent analyses suggest that the tide might be turning, with some experts predicting a breakout that could propel VET’s price to new heights.
A Challenging Six Months for VeChain
Over the past six months, VeChain has struggled to gain traction in the market. Its price dropped to $0.018 in August, and by September 20, it had only managed to recover slightly, reaching $0.023. This represents a 91% decline from its all-time high, underscoring the intense bearish pressure the cryptocurrency has been under.
Despite this prolonged decline, analysts believe that VeChain could be on the verge of a significant turnaround.
Possible Bullish Reversal: Elliott Wave Analysis
One of the more optimistic views comes from EGRAG, a well-known analyst on the social media platform X (formerly Twitter). EGRAG’s analysis is based on the Elliott Wave Theory, a technical analysis framework that uses wave patterns to predict market trends. According to this theory, VeChain could be about to enter an impulsive Wave 3, a phase characterized by strong upward movement.
Wave 3, which is part of a larger five-wave structure, is often the most dramatic phase, with prices surging rapidly. EGRAG’s analysis suggests that if this wave materializes, VeChain’s price could skyrocket to $0.91 in what is referred to as “Move A.” In a more optimistic scenario, known as “Move B,” VET could even reach as high as $2.26. These price movements are expected to occur over a relatively short period, with historical patterns suggesting completion within 150 days.
Mixed Market Indicators
While the Elliott Wave analysis presents a bullish outlook, other technical indicators offer a more cautious perspective. According to data from TradingView, VeChain has been trading near the lower band of its Bollinger Bands, a sign of persistent bearish pressure. A slight narrowing of these bands suggests that the market is entering a consolidation phase, which could precede a significant price move.
Additionally, the Relative Strength Index (RSI), currently reading around 43.53, indicates weak bullish momentum. While the RSI has recently crossed above the 40-level, signaling a potential shift from bearish to neutral sentiment, it remains to be seen whether this will translate into a sustained rally.
Conclusion: Is a Breakout Imminent?
VeChain’s recent price movements may seem discouraging, but the potential for a breakout remains. With Elliott Wave Theory pointing to a dramatic upward surge and other indicators suggesting a possible shift in momentum, VET could soon experience a major price movement. For now, investors will need to keep a close eye on market conditions to determine whether VeChain’s long-awaited recovery is finally on the horizon.
