The popular metaverse coin Decentraland price is at risk of a violent pullback to $2.75, according to the analyst. Analyst Jonathan Morgan makes this prediction, while Gann uses a number of metrics such as the time cycle. Detail Cryptocoin. com
A sharp drop for the popular metaverse coin?
The Decentraland price has risen by a staggering 7,766% since January 1, 2021. However, the same seven-week Gann cycle that triggered the correction in Bitcoin and Ethereum is now present on the MANA weekly chart. Decentraland price action results in a closing 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 one direction for seven weeks. Decentraland (MANA) is in the seventh consecutive week of a one-week candlestick above the open. This cycle culminates simultaneously with the formation of large gaps between the bodies of the weekly candlesticks and Tenkan-Sen. All signs point to a rapid downward move. One of the most sought-after short signals in Point and Figure analysis is the Bear Catapult. The hypothetical short entry is a buy stop of $4.20, a stop loss of $5.00 and a profit target of $2.00.
The implied profit target of $2.00 is based on the Vertical Profit Target Method in the Point and Figure and goes beyond the expected support level of $2.75. This is not to say that Decentraland price will not find support at $2.75, but it is a warning to MANA how wide any corrective move could be. While the current time and price conditions are bearish for Decentraland, the overall trend remains bullish and MANA is in the price discovery zone. Therefore, a return above $5.00 could trigger more buying towards the $7.00 range.