- Decentraland price at risk of a violent pullback to $2.75.
- A powerful bearish Point and Figure pattern warns of a likely retracement.
- A Gann time cycle complements the Point and Figure analysis warning of a flash-crash.
Decentraland price has been the biggest surprise of 2021, gaining a staggering 7,766% since January 1st, 2021. However, the same seven-week Gann cycle that triggers the correction in Bitcoin and Ethereum is now present on the MANA weekly chart.
Decentraland price faces a 40% drop to $2.75
Decentraland price action is culminating into a termination phase known as Gann’s ‘death cycle.’ Gann’s ‘death cycle’ is a seven-week time cycle that warns of imminent corrective moves if an instrument has been trading in a single direction for seven weeks.
Decentraland is in its seventh straight week of a weekly candlestick close above the open. This cycle culminates at the same time that massive gaps between the bodies of the weekly candlesticks and the Tenkan-Sen have developed. All signs point to a fast move south.
One of the most sought-after short signals in Point and Figure analysis is the Bearish Catapult. That pattern is developing on the $0.20/3-box reversal Point and Figure chart. The hypothetical short entry is a buy stop order at $4.20, with a stop loss at $5.00 and a profit target at $2.00.
MANA/USDT Weekly Ichimoku Chart
The implied profit target of $2.00 is based on the Vertical Profit Target Method in Point and Figure and extends beyond the expected support level at $2.75. That is not to say Decentraland price won’t find support at $2.75, but it is a warning of how expansive any corrective move could be for MANA.
As bearish as the current time and price conditions are for Decentraland, the overall trend remains bullish, and MANA is in price discovery territory. Therefore, a return above the $5.00 value could trigger further buying towards the $7.00 range.
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
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.