The crypto market is witnessing another slump with Bitcoin (BTC) falling to around $61,000. The global market cap has fallen 3.8% in the last 24 hours to $2.34 trillion. VeChain (VET) has also faced a significant correction, falling 8% in the daily charts, 22.9% in the weekly charts, 7.7% in the 14-day charts, and 4.7% over the previous month.
Also Read: VeChain: VET Makes Major Announcement On New Product Launch
The latest dip could be due to the Iran-Israel conflict, which led to $2.5 billion in liquidations. Traders might be exercising caution as geopolitical tensions take hold. Furthermore, inflation in the US continues to remain above the Federal Reserve’s 2% target. High inflation has faded expectations of an interest rate cut, further fuelling investor caution. The Fed will likely follow its policy of higher rates for longer until there is more evidence of inflation cooling.
VeChain (VET) to hit $0.08?
Despite the recent correction, VET might witness a significant rebound. According to crypto analyst Ali Charts, VET is mirroring its June to December 2020 price movements. According to the analyst, the asset may pull back to around $0.032, a drop of around 13.51% from current levels.
However, Ali Charts anticipates the recent dip to set the stage for a “continued bull run.” According to the chart shared by the analyst, VET could surge to as high as $0.08, a rise of over 116% from current levels.
Also Read: VeChain: How High Will VET Trade In April 2024?
CoinCodex also paints a bearish picture for VeChain (VET) for the next few weeks. The platform anticipates VET to continue trading below $0.040 till at least May 18, 2024.
However, the asset could witness a rebound following Bitcoin’s (BTC) halving. Many analysts anticipate a market-wide rally following the event, given that historically BTC has always surged after a halving.