VeChain (VET) on its path to $1,50History doesn't repeat but it rhymes.
Mark Twain once said this, and even though he was probably not talking about charts and price movements in particular, the statement is true. Because what he meant then are human behavior patterns and human behavior patterns are reflected in price movements.
Now to business.
Have a look on the chart an let us compare the end of 2020 and today's price movements. Then, as now, the VET price formed a high (1) before subsequently correcting sharply (2). Over the following weeks, it entered a sideways movement and formed a new bottom (2-8). This sideways movement crystallized a year ago as an accumulation phase.
Shortly thereafter, the VeChain price rose from around $0.01 to just under $0.28.
As the chart above illustrates, the VeChain price and its current movements show great similarities to the pattern back then. In this regard, we may have already seen the last counter-movement (8) and are on the verge of a structural break where the price will establish the previous high between $0.14 and $0.15 as support.
Note that I have added a question mark to point 8 here. This is because it is not yet certain whether we have actually already seen the lowest point of the current countermovement here. Should a lower low than (8) still form, an adjustment of the further course would be necessary.
Furthermore, there are still a few notable hurdles to overcome before it should be assumed that a similar price trend will announce itself here as it did back then at the end of 2020.
The pattern where previous higher highs are broken and established as new support by higher lows should repeat at least 2-3 times. This would give the certainty that a stable uptrend is being constructed here, which is about to enter its parabolic phase.
For the VeChain price, such price levels where resistance becomes the new support should be the following:
- $0.14 to $0.15
- $0.20 to $0.25
Should this succeed in the coming weeks, there is much to suggest that the VeChain price will indeed enter a new parabolic price rally. If this still hypothetical price rally will be similar to the previous one in relation, about $1.50 is the price target.
Souce: VeChain Prognose
