Decentraland price is overwhelmingly bearish on the daily Ichimoku chart. All of the requirements for an Ideal Bearish Ichimoku Breakout entry are fulfilled and have been for the past week – but no follow-through selling has occurred.
Decentralnd price action, while bearish, is not without its reasons for a bullish outlook. A hypothetical long setup with a buy stop order at $3.80, a stop loss at $3.20, and a profit target at $5.80. The trade is based on the simultaneous breakout above the upper trendline of a descending triangle and the bear market trendline. If MANA hits the entry, it converts the $0.02/3-box reversal Point and Figure chart into a bull market.
MANA/USDT $0.20/3-box Reversal Point and Figure Chart
The hypothetical long trade setup represents a 3.33:1 reward/risk with an implied profit target of 57% from the entry. However, a trailing stop of two to three boxes would help protect any profit generated after the entry is triggered. This long idea is invalidated if Decentraland price drops to $2.40
There is a fantastic setup on the short side of the market with an anticipated triple-bottom breakout. The theoretical short entry is a sell stop order at $2.60, a stop loss at $3.00, and a profit target at $1.40. The short idea is a 3:1 reward/risk with a little over a 40% gain projected from the entry. A three-box trailing stop may be too large for this trade setup, so a two-box trail would be most appropriate.
MANA/USDT $0.10/3-box Reversal Point and Figure Chart
The short idea is invalidated if the long entry triggers first.