Yerevan (CoinChapter.com) — A random Twitterati complains about losing more than $1,100 by investing in Dent, a relatively unknown blockchain project whose token of the same name rallied by more than 12,250 percent in 2021 — while earning a little fame on the sideways.
But the random investor mentioned above is angry and blames the Dent team for causing him extreme losses. “This is not a good coin,” he tells other Twitter followers, warning that nobody should buy the DENT token because it pumps only a bit before crashing down. CoinChapter feels sorry for his and the losses of many people that have lately boarded altcoins while hoping to strike gold (metamorphically, you anti-gold brigade).
Of course, low-liquidity tokens like DENT were expected to crash when they started rallying uncontrollably higher in both the US dollar and bitcoin markets. It does not mean Dent as a project is an outright scam. The blockchain protocol, which aims to liberalize mobile data through blockchain, is looking to do so since its launch in 2017.
…the word across social media communities gets louder by each day — especially as the core team keeps on dumping their share of DENT tokens in spot markets and cites coronavirus-led traveling restrictions as the main reason for not being able to promote their product globally among potential investors.
That brings most professional traders to a point where they start looking at DENT as nothing but a short-term opportunity to secure the best gains. The historical support and resistance levels turn out to be the main indicators as speculators blindly bet on DENT. In short, it can go up, but it can go down.
But the same technical indicators now give at least three reasons why DENT could lose its value by half in the coming session. Before dwelling into then, let’s have a thorough look at the DENT/USDT chart as shown below.
The DENT/USDT trade setup boasts about three different technical patterns, all pointing at the same conclusion: That the pair will crash. These setups include a Falling Wedge, a Fibonacci Retracement Graph, and a 200-day Simple Moving Average.
DENT Thy Bullish Bias
The Wedge pattern shows DENT/USDT fluctuating inside a contracting descending range. Its two trendlines converge at a point that is nearly 50 percent lower from the token is trading at press time. Meanwhile, the Wedge apex is very near the 100 percent Fibonacci line of $0.0030, based on a Fib graph drawn from the swing low of $0.0030 to the swing high of $0.0193.
Meanwhile, a support confluence comes from the orange wave, which is the 200-DMA. Traders usually see moving averages during downtrends as their support targets. That additionally puts pressure on bulls to tackle a three-headed bear attack.
Optimists can expect an early upside breakout from the Falling Wedge pattern. They are usually bearish reversal structures.
PS: We have not linked the people who criticized DENT to protect them from unnecessary trolling. Trade safe!