Metaplanet stock price continued its strong downtrend this month and is now trading at its lowest level since May 7. It has now plunged by 80% from its highest point this year, and this downtrend may continue after flashing a death cross pattern and as its premium plunges.
Metaplanet Stock Price Death Cross Forms
The daily timeframe chart shows that the Metaplanet share price has been in a freefall in the past few months. It has retreated from a high of ¥1,930 in June to ¥400 today. This crash happened even though Bitcoin jumped to a record high earlier this month.
The main risk for the stock is that it has now formed a death cross pattern, which often leads to more downside. This pattern normally leads to more downside as it confirms that the downtrend is gaining momentum.
Metaplanet share price has moved below the important support level at ¥500, its lowest point on September 30th. It also remains below the Ichimoku cloud indicator while the Supertrend has turned red.
The Relative Strength Index (RSI) and other oscillators are pointing downwards. Therefore, the most likely scenario is where the Metaplanet share price continues its downtrend, potentially to the next key point at ¥287. This target is its lowest in April this year.
On the flip side, a move above the resistance at ¥500 will invalidate the bearish outlook and point to more gains in the longer term.
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Metaplanet Premium Has Disappeared
The ongoing Metaplanet share price crash has led to a deterioration of its premium. Data compiled by BitcoinTreasuries shows that the mNAV multiple has been in a strong downtrend this year, moving from a peak 22 to 0.94.
The diluted mNAV multiple has plunged to 1.184, while the enterprise value mNAV has dropped to 1.172. These multiples were significantly higher a few months ago.
The falling mNAV figure is a sign that the company has now become a bargain. For example, a person or company that buys Metaplanet outright would make money, especially when the Bitcoin price rebounds.
However, it also means that the company’s goal of accumulating 210,000 coins is now not realistic, especially if the mNAV remains below 1 for a long time. That’s because the company will struggle to raise new money through selling ordinary and preferred shares.
These challenges explains why Metaplanet has not bought Bitcoin in the past few weeks.
Its challenges are mirrored across the Bitcoin treasury industry, with the mNAV multiples of other companies like Strategy, KindlyMD, and MicroCloud Hologram have all plunged recently.
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