Key Takeaways:
- Magic Craft (MCRT) rallies 1,000% in a month, but the rally fizzled out.
- The rising wedge formation spells trouble for the token.
- MCRT rallied ahead of the public Beta launch, expected in Q4 2022.
YEREVAN (CoinChapter.com) – The market valuation of Magic Craft (MCRT), an elaborate player vs. player (PVP) game, has exploded by 1,000% in August. In doing so, its price per token reached $0.018 on Aug. 23.
Rising wedge on the MCRT chart
From a technical perspective, MCRT has been painting a bearish reversal setup called the “rising wedge,” as visible in the two-hour chart below, entailing the price trending higher inside a range defined by two ascending trendlines converging toward each other.
MCRT confirmed the bearish nature of the pattern by breaking below its lower trendline (at around $0.018) on Aug. 22. In a “perfect” scenario, the said breakdown could crash the price by as much as the wedge’s maximum height.
Also read: Metaverse bubble popping as mainstream, crypto firms report losses.
The relative strength index (RSI) also printed lower highs, in dissonance with the price action’s higher highs. This divergence typically leads to a bias reversal and supports the bearish claim.
That Beta launch
In detail, Magic Craft became a “trending Metaverse project” in January 2022. Since then, MCRT pulled off four-digit rallies, and the recent push came from announcing a Beta version release.
“Make sure you’re eligible to take part by holding 1,000,000 $MCRT or owning at least 1 NFT from our collection,” tweeted the team on Aug. 19.
As a result, the token trended on social media and was the most traded digital asset on PencakeSwap by Aug. 21, outrunning the platform’s utility token.
Meanwhile, according to Magic Craft Roadmap, traders can expect the public Beta launch in Q4 2022, along with the Caste siege system. Thus far, the game has released a 9,999 NFT Genesis collection, and preview maps launched an NFT marketplace and MCRT staking.
