Mcoin (M20) Nosedives 14% as Bear Flag Pattern Emerges: Will MCOIN Price Drop to $0.449?

Mcoin, the native token of the M20 Chain, has been in a perpetual nosedive since trading started early in June 2024.

Mcoin, the native token of the M20 Chain, has not had the best of times since trading began in early June 2024. However, the token’s troubles may not be over just yet, as a glance at the price chart reveals a bearish technical setup.

The M20 Chain ecosystem revolves around MCOIN, which is used for governance, utility, NFT purchases, trading, and gas fees. Tokenomics includes 48% for public sale, 16% for a private sale, and 10% for the founders and team.

The token price has formed a bearish technical setup called the ‘bear flag pattern.’ 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 effects of the price movement.

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.

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.

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.