As with the majority of the cryptocurrency market, VeChain (VET) reached an all-time high price in the beginning of Jan. 2021.
The previous market cycles for VET have been relatively different from those of other coins. Its first one was downwards from the start. One of its few common points was when the coin hit an all-time low price on Mar. 2020.
In this article, we will take a look at the previous market cycles and compare them to the current one. Then we consider what could happen next.
First Market Cycle
The first market cycle for VET began on Jul. 28, 2018, one day after its listing, when it was trading at a high of $0.028.
VET began to decrease almost immediately afterwards. It lost 89% of its value over the next 142 days. A bottom in November led to a dead-cat bounce, but that was short-lived and the coin resumed its downward correction.
VET settled at a low of $0.0031 on Dec. 15, 2018, which was an all-time low price for the first cycle.
Second Market Cycle
The second market cycle for VET began in Dec. 2018. It was much more gradual than the first one, since it increased by 266% over 192 days, for a daily rate of increase of 1.2%.
The ensuing correction was also nearly twice as long as the first one, though the rate of decrease was very similar, being 88%.
Interestingly, on Mar. 13, 2020, VET reached a new all-time low price of $0.0014. This was one time in which Vechain’s movements corresponded to the market – bitcoin hit its COVID-related low on this date.
Afterwards, VET began the third and current market cycle, which is still ongoing.
VET’s Current Movement
The third and current cycle can be best split into two different movements. The first one transpired between Mar. – Nov. 2020. Over this time, VET increased by a whopping 1533% in only 149 days, for a daily rate of increase of more than 10%.
Afterwards, it corrected the entire move by decreasing by 63% in 88 days, reaching a low of $0.0086 on Nov. 5, 2020.
The ensuing upward movement was the catalyst for the all-time high price, since VET reached a high of $0.036 on Jan. 21, 2021. While the coin has decreased slightly since, it’s still up by 242% over the past 89 days, and is still trading above the previous all-time high price.
Since the coin is trading above the previous all-time high price, there is no resistance above the current price. Therefore, if it manages to validate the current level as support, the rate of increase can become parabolic due to the lack of overhead resistance.