Decentraland develops massive bearish signal that could push MANA to $1
|- Decentraland price has potentially two significant bearish signals co-occurring.
- A 70% collapse is highly probable.
- Hodlers who bought between $2.90 and $5.80 may vanish.
Decentraland price, the broader metaverse and gaming token space continue to face considerable weakness and selling pressure after speculator runs in late 2021. MANA, in particular, has developed a potentially devastating short setup on its $0.10/3-box reversal Point and Figure chart.
Decentraland price could face a capitulation move very soon
Decentraland price has a spectacular short opportunity developing on its Point and Figure chart. The theoretical short entry idea is a sell stop order at $2.90, a stop loss at $3.30, and a profit target at $0.90. A two to three-box trailing stop would help protect any profits after the entry.
This short entry is ideal because it is based on two simultaneous events if Decentraland price hits the short entry level at $2.90. The first bearish event is a break of a triple-bottom. The second, and perhaps most important, is that the entry confirms the existence of a pattern in Point and Figure Analysis known as a Bullish Fakeout.
A Bullish Fakeout Pattern occurs when the prior X-column has two Xs above a multiple top, but then the next O-column develops a short entry. The Bearish Fakeout Pattern is a type of bull trap setup. Buyers become stuck and concerned about their entry as prices drop. As a result, those late-term buyers turn into sellers, further accelerating the price decline.
MANA/USDT $0.10/3-box Reversal Point and Figure Chart
The theoretical short trade idea is invalidated if Decentraland price moves above $3.80.
Traders and investors in the metaverse and gaming token space should be aware that if the cryptocurrency market returns to a bull market, cryptocurrencies like Decentraland and Sandbox may be laggards in any rally. As a result, traders and investors are likely to take profit out of the metaverse/gaming token cryptocurrencies and shift them into assets that have lagged the market and are better positioned for their own rallies.
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