Metaplanet stock price has been in a free fall this year, moving from a record high of ¥1,927 in June to the current ¥400. This crash has erased billions of dollars in value, a trend that may continue as its technicals worsen.
Metaplanet Stock Price Technical Analysis
The daily timeframe chart shows that the Metaplanet share price has collapsed in the past few months. It has recently moved below the 78.6% Fibonacci Retracement level.
Metaplanet stock has already formed a death cross, as the 50-day moving average has crossed below the 200-day MA. This pattern often leads to more downside.
A good example of this is what happened in May last year when it formed a golden cross pattern. This pattern triggered a surge, with the stock moving from below ¥50 to ¥1,927.
The stock has remained below the Ichimoku cloud and the Supertrend indicator, a sign that bears remain in control for now. Also, the Relative Strength Index (RSI) and the MACD have continued moving downwards.
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On the positive side, the stock has formed a small double-bottom pattern at ¥400 and a neckline at ¥535. Therefore, there is a slim chance that the stock will bounce back if it holds above ¥400.
However, a move below the support at ¥400 will signal further downside, potentially to the key support level at ¥295, where it formed a double bottom in April and May this year.
Metaplanet Shares Face Substantial Risks
The Metaplanet stock price faces substantial risks ahead. First, Japan’s top stock exchange has started a crackdown on Bitcoin treasury companies. For example, it is exploring options such as stricter applications of its backdoor listing rules and requiring these companies to undergo a special audit.
The company is also at risk as the Bitcoin price has formed numerous bearish chart patterns. It formed a death cross pattern when the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. It also formed a double top on the daily chart and a rising wedge on the weekly chart.
These patterns point to more downside over time, which will affect companies in the Bitcoin treasury industry.
Additionally, the company has lost its premium as investors have embraced a valuation reset. Its mNAV has plunged to 0.922 as its Bitcoin valuation has moved to $2.94 billion, and its market cap has dropped to $3 billion.
Other Bitcoin treasury companies, like Strategy, MicroCloud Hologram, and Semler Scientific, have also lost their premium. Losing this premium makes it harder for the companies to raise money, which they use to buy Bitcoin.
The company is also facing other risks, including an oversupply of digital asset treasury (DAT) companies, waning demand from retail and institutional investors, and Bitcoin’s underperformance relative to the market.
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