Crypto News

DENT dents its bullish expectations on classic bearish pennant formation — what to expect?

dent
Image by Free-Photos from Pixabay

Yerevan (CoinChapter.com) – DENT, the native token of Dent, the Hong Kong-based digital SIM and data provider, was flashing signs of undergoing depressive moves in the upcoming sessions. It has formed the pennant pattern, which could see the price drop down to 0.0016 against USDT (Tether USD stable coin). The token traded at 0.0036 USDT in the London session Thursday.

DENT might eye further losses. Source: DENTUSDT on TradingView.com
DENT might eye further losses. Source: DENTUSDT on TradingView.com

The Pennant formation occurs after a significant price shift happens in either direction, known as a flag pole. In DENT’s case, the latest flag pole was bearish with a 57 percent drop. A consolidation period followed, capsuled between two trendlines with similar slopes and opposing bias. The upper trendline was descending, capping breakout attempts, while the bottom was ascending, providing support.

The pennant is a continuation pattern, where the future bias is determined by the flag pole. DENT’s flagpole before the consolidation had been bearish. Therefore, the bias after the formation is complete might be bearish as well.

Other Bearish Indicators for DENT

The token sought support from a significant $0.0035 price margin (red line on the chart). Instead, it has acted as both support and resistance on multiple occasions in the last 3 months.

The 200-day simple moving average (SMA-200: yellow wave) is acting on the confluence with the resistance and preventing DENT from going bullish. However, the wave could flip back to support should the token manage to close above it.

Moreover, DENT/USDT 1D chart is showing signs of a looming death cross.

In hindsight, the death cross occurs when a short-term moving average crosses down below a long-term moving average. Thus, it is a strong bearish indicator, predicting a lasting decline phase until the time when the short-term MA manages to restore its previous position.

The 20-day exponential moving average (EMA-20: green wave) has sloped down and reached the SMA-200 on the DENT 1D chart. Thus, if a death cross occurs, the token can expect further losses.

The crypto market as a whole suffered severe losses as Bitcoin rapidly slid close to the $31,000 price margin on June 8. The alpha coin managed to recover back to $37,993 in the European session Thursday however took the market down, as the total market cap declined by $200 billion in a day.

Combined with the overall bearish tendency throughout the crypto market, the charts are not looking optimistic for DENT, at least in the short term. The token could eye further losses and drop as far as 0.0016USDT according to the Pennant formation and the rest of the bearish factors listed above.

Read more: Gold, Not Bitcoin, Emerges as Safe-Haven as CPI Levels Shoot Up

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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