According to a well-known crypto trader, Decentraland (MANA), ApeCoin (APE), and Frax Share (FXS) are laying the groundwork for large rallies.
Cantering Clark, a pseudonymous trader, informs his 156,700 Twitter followers that the metaverse protocol Decentraland is exhibiting a short bear squeeze, indicating further upside.
“GameFi and the metaverse are pulsing. If I had to guess, MANA could become even more volatile to the upside, given that OI [Open Interest] is nearly double what it was before a slew of Barry-related shorts and hedges were added. “There’s more fuel in this squeeze.”
A short squeeze occurs when traders who borrow units of an asset at a certain price with the intention of selling them at a lower price and pocketing the difference are forced to buy the assets back as the trade moves against their bias.
MANA is currently trading at $0.41, up 38% from its low of $0.295 earlier this month.
Looking at APE, Cantering Clark believes the native token of the Bored Ape Yacht Club community will likely continue to rise after overcoming its immediate resistance.
“With only 30 minutes left, a weekly close through $4.30 is setting up. If metaverse and GameFi continue to grow, APE will catch wind in its sails.”
At the time of writing, APE is worth $4.52. A move toward the analyst’s target of $7.20 implies an increase in APE of nearly 60%.
Finally, he claims that FXS, the governance token for the Frax stablecoin protocol, has formed a solid bottom and is poised for a breakout.
“I see FXS catching a bid again, and the three-day chart has a granite bottom. “I’m betting on this breaking up and will position myself accordingly.”
At the time of writing, FXS is trading at $5.53.
