dailyhodl.com
A closely followed crypto trader says Decentraland ($MANA), ApeCoin ($APE) and Frax Share (FXS) are setting the stage for big rallies.
The pseudonymous trader Cantering Clark tells his 156,700 Twitter followers that the metaverse protocol Decentraland is showing a short bear squeeze, signaling further upside.
“GameFi and metaverse pumping. If I had to guess, $MANA has the potential to get even more violent to the upside given that OI [Open Interest] is nearly double what it normally was, before a bunch of Barry-related shorts and hedges were tagged on. This squeeze has more fuel.”
A short squeeze happens when traders who borrow units of an asset at a certain price in hopes of selling them for a lower price to pocket the difference are forced to buy assets back as the trade moves against their bias.
At time of writing, $MANA is valued at $0.41, up over 38% from its low this month of $0.295.
Looking at $APE, Cantering Clark says the native token of the Bored Ape Yacht Club community is likely going to continue upward after taking out its immediate resistance.
“A close through $4.30 for the weekly is setting up right now with only 30 minutes left. If metaverse and GameFi are going to continue to pump, $APE catches wind in its sails.”
$APE is valued at $4.52 at time of writing. A move toward the analyst’s target of $7.20 suggests an upside potential of nearly 60% for $APE.
Lastly, he says FXS, the governance token for the Frax stablecoin protocol, appears to be forming a solid bottom and could be gearing up for a breakout.
“I see FXS catching a bid again, and this three-day chart has a granite bottom. I am betting on this breaking up, and positioning accordingly.”
At time of writing, FXS is changing hands at $5.53.