MCoin price is pulling out of a nosedive, but bears may not be done yet Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Mcoin, the native token of the M20 Chain, has been in a perpetual nosedive since trading started early in June 2024. However, the token’s price might not be out of troubled water yet.
M20 Chain’s ecosystem centers on MCOIN, used for governance, utility, NFT purchases, trading, and gas fees. Tokenomics includes 48% for public sale, 16% for private sale, and 10% for founders and the team. Allocations also include 8% for marketing, 4% for future growth, 4% for rewards, 5% for partners, and 5% for charity.
A Bearish Outlook Remains For MCOIN Prices
The MCoin token price has formed a bearish technical setup called the ‘bear flag pattern.’
MCOIN USD pair formed a bearish setup on the 4-hour chart. Source: Tradingview
The bear flag pattern appears on a cryptocurrency price chart when a brief, sharp countertrend movement—often referred to as the flag—follows a preceding downward trend. The formation typically signals a potential reversal of the countertrend.
In a bearish continuation setup, volume levels may stabilize or decrease during consolidation. During the consolidation period of a bear flag setup, the market often trends upward in response to the initial price drop, triggering FUD.
The emotional response typically results in higher-than-average trading volumes as investors and traders re-enter the market to capitalize on or mitigate the price movement’s effects.
Traders calculate the bear flag pattern’s price target by subtracting the flagpole’s length from the breakout price level. As a result, the MCOIN USD price might drop to $0.449, a 14% drop from the current price level.
MCoin Price Fails To Keep Uptrend Going
Meanwhile, the daily timeframe chart shows candles with long upper wicks, indicating the bearish pressure against the token. MCOIN traders in India had a harder time as the MCOIN INR pair performed more poorly than the MCOIN USD did.
MCOIN INR daily price chart.
The M20 team has not made much effort to promote the project. Though the MCOIN X handle has over 16,000 followers, the social media team has shared only 355 posts since June 2023. Maybe the team believes in more organic forms of advertising.
Potential red flags include governance centralization due to significant control by the founding team and the risk of sell-offs from the 10% allocation to founders.
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