VeChain faces prolonged bearish pressure, but analysts see a potential reversal to the upside.
VeChain (VET) has faced a challenging six-month period, consistently posting red on its monthly charts. VET dropped to $0.018 in August and, as of September 20, traded at $0.023.
This level is a 91% slump from its all-time high, reflecting the prolonged bearish sentiment surrounding the altcoin. However, recent analysis suggests a potential turning point could be on the horizon.
Possible Bullish Vechain Move
An analysis from EGRAG, a prominent analyst on X, points to a possible game-changing move for VeChain based on Elliott Wave Theory. The analysis focuses on impulsive and corrective wave patterns, which have influenced VET’s price movements.
According to EGRAG, VET is positioned to enter an impulsive Wave 3, a key phase within the Elliott Wave structure characterized by five sub-waves. This phase is often followed by a corrective Wave 4 and then a final Wave 5, which could lead to an explosive price surge, commonly referred to as a blow-off top.
#VET Move A: $1 or Move B: $2!!!!
The next move for #Vechain is going to be a game-changer! 🎯
If we're entering impulsive Wave 3️⃣, it needs to show 5 sub-waves. If this next impulsive structure hits all the right criteria, get ready for a quick and aggressive corrective Wave… pic.twitter.com/Di01tmg0sP
— EGRAG CRYPTO (@egragcrypto) September 21, 2024
The analysis suggests that the expected price movements could occur rapidly, with historical data indicating similar waves completing within approximately 150 days. Potential targets include $0.91 if VET follows what EGRAG calls Move A, and a more ambitious $2.26 if it trails Move B.
Indicators Signal Mixed Momentum
Meanwhile, indicators from TradingView provide additional insights into VET’s current market conditions. The Bollinger Bands reveal that VET has been trading near its lower band, indicating sustained bearish pressure with minimal bullish attempts.
A slight narrowing of the bands hints at reduced volatility, suggesting a consolidation phase that might precede a significant price move once volatility picks up.
The Relative Strength Index (RSI), currently reading around 43.53, shows 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.