Mask Network (MASK) Price May Drop Sharply In The Near Term, Here’s Why?
The price of Mask Network (MASK) has broken down below a long-term pattern and a significant moving average (MA) line. It is likely to continue declining in the near future.
Ascending Parallel Channel
The Mask Network (MASK) price has been trading within an ascending parallel channel after a strong rally of more than 450% at the end of October 2022. This is a bearish pattern that often leads to breakdowns in the most cases.
Indeed, the price of MASK has broken down below the pattern and confirmed it as resistance on June 21st (red arrow).
Additionally, when combining the high made on June 21 and the high made on June 22 at $4, we observe the presence of a double-top pattern. This is also a bearish pattern, supporting the likelihood of further declines.
The daily RSI indicator indicates a bearish trend, forming bearish divergence and declining below the 50 level.
Therefore, the price of MASK is likely to decline to the support area around $2.7 in the near future.
Long-term Prospects
The weekly chart shows a similar bearish outlook as the price of MASK has broken down below the 20-week MA, which had previously provided support on two occasions (green arrows).
The 20-week MA is often used by analysts to identify long-term trends, so breaking below it signals a reversal to a bearish trend or a deep correction.
The weekly RSI indicator has also dropped below 50 and is sloping downwards, supporting the idea of continued decline.
If the price continues to drop, the significant long-term support to watch is around $2.
Conclusion
The most likely scenario suggests that the price of MASK will continue to decline in the near future. The nearest target is $2.7, and it could go even lower to $2.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
Read more:
- Cardano (ADA) Price Could Move Higher In The Near-Term, Here’s A Potential Target
- MakerDAO: DAI Savings Rate (DSR) To Reach 8% In Effort To Spur DeFi Growth