- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.