Ripple’s RLUSD stablecoin has gained momentum in decentralized finance (DeFi), attracting significant supply to Aave’s V3 Ethereum Core market, with a notable amount in loans taken. 

Daily top performer — Sui Network (SUI)

The S&P 500 gained 1.67% on easing trade tensions and Fed reassurance, but pared gains after tariff cut hopes were downplayed. Gold fell from its $3,500 high, signaling a bearish reversal. Key support lies near $3,167, with further downside possible. The Coindesk Indices, which tracks the broader crypto market, fell 0.53%, with Bitcoin and Ether up 2.19% and 5.92%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is SUI, up 7.3%, following OVERTAKE's partnership with Sui to build a scalable and trustless game asset trading platform.

Sui Network (SUI), founded in 2022, is a Layer 1 blockchain by Mysten Labs, built to improve web3 scalability, speed, and security. It aims to reduce smart contract latency and support innovative NFT gaming, like Sui Monstar, with a developer-friendly environment. 

, efficient game asset trading platform. Leveraging Sui’s object-centric architecture, parallel execution, zkLogin, and modular infrastructure, OVERTAKE aims to enable trustless trading, verified in-game assets, and a real, on-chain game economy.

Check out the latest prices, charts, and data of 

 has gained momentum in decentralized finance (DeFi), attracting significant supply to Aave’s V3 Ethereum Core market, with a notable amount in loans taken. Initially slow, the stablecoin's growth has accelerated after its debut on Aave. RLUSD has a market cap close to $300 million and a supply cap, with borrowing limited to a specific amount. Ripple aims for RLUSD to become a top-five stablecoin by year-end. Ripple's collaboration with Chainlink enhances RLUSD’s utility across both institutional and DeFi applications.

Yesterday, BTC spot ETFs saw $273.8M in total inflows, all from non-GBTC funds.

, with 10% of MILK’s 1B supply allocated for eligible users—mPoint holders, oolitia NFT holders, and milkINIT testers. Opt-in is required for CEX claims; wallet claims need no action. Pre-deposits close April 26, 12 PM UTC.

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Ripple’s RLUSD stablecoin gains momentum with Aave integration and growing DeFi presence

VanEck’s BNB Spot ETF proposal could bring BNB to U.S. markets, expanding access and marking a key milestone for BNB Chain's growth in regulated finance.

After the US Securities and Exchange Commission (SEC) approved spot exchange-traded fund (ETF) products based on 

 (ETH) in 2024, a flurry of new altcoin ETF applications emerged in early 2025. Many prominent asset management firms are vying for the approval of their ETF products, based on coins like 

 (AVAX) and others. Even some smaller-cap meme coins, specifically Pudgy Penguins' 

, have joined the SEC's ETF waiting list.

Given that most top cryptos already have their ETF applications filed with the country's financial regulator, it's little surprise that BNB Chain's 

, the fifth-largest cryptocurrency by market capitalization, has joined the bandwagon. In late March 2025, the New York–based global investment management giant VanEck registered a trust entity named VanEck BNB ETF in the US state of Delaware. The registration is an early sign that the acclaimed investment manager is planning to lodge a BNB ETF application with the SEC.

If approved, it will be the first US-based BNB ETF product on the market, likely leading to significant growth within BNB Chain's already well-established ecosystem.

On Mar 31, 2025, one of the leading asset managers in the world, VanEck, registered a trust named VanEck BNB ETF in the US state of Delaware. This is the strongest imaginable indicator that the company plans to subsequently launch an application with the SEC for the ETF’s approval. If approved by the regulator, the product will be the first spot ETF in the US to track BNB coin. As of the time of this writing (Apr 23, 2025), VanEck hasn't formally applied with the SEC, but this step is likely imminent.

Following the SEC filing, BNB coin will join a long list of other leading cryptocurrencies whose spot ETF applications have been lodged with the US regulator. Over the past few months, the SEC has received spot ETF applications for Solana, 

The VanEck BNB Spot ETF will track BNB coin, allowing holders to invest in the asset without directly holding it. While BNB is among the most popular assets in the crypto market, many investors are eschewing it and other cryptocurrencies due to their unregulated nature. Upon approval, the ETF product would be available for trading on regulated stock exchanges.

The exact composition of a crypto ETF product is usually unknown before its application is filed with the SEC. Therefore, we can assume that at this stage the ETF will be based entirely upon tracking BNB coin. Any additional components, such as minor holdings of other assets such as cash equivalents, could theoretically be included, but this will only be known upon VanEck’s formal application to the SEC.

VanEck itself is among the leading ETF issuers in the finance industry and is a pioneer of crypto ETFs. The firm already offers approved 

, and has filed applications with the SEC for spot ETFs based on several other cryptocurrencies, including a 

Currently, there’s no ETF in the US based on the BNB coin. In that respect, VanEck’s registration is the first serious effort to introduce such a product. Internationally, there is one exchange-traded product (ETP) that tracks BNB — the 21Shares Binance BNB ETP (ABNB), listed on the Swiss Stock Exchange. This ETP is offered by 21Shares, a leading digital asset management firm based in Zurich, Switzerland.

. ETPs may be based on various assets, such as stocks, bonds, commodities or cryptocurrencies. However, ETFs often offer better liquidity, lower fees and greater tax efficiency than other types of ETPs.

In short, despite the presence of the ABNB ETP on the market, the BNB ETF landscape remains an empty niche, as the 21Shares product isn’t a full-fledged ETF and has no regulatory approval in the US.

Current impact of BNB ETF applications on the crypto market

VanEck’s BNB ETF application — or, to be precise, its registration in Delaware — has so far had no immediate impact on the coin’s market price. In fact, BNB coin is currently trading at $615.68, barely different from its price of $600 in the early days of April when news of the ETF’s registration first surfaced.

BNB is a major cryptocurrency featuring at least one billion dollars in daily trading volumes. The news of VanEck's initiative is unlikely to seriously affect BNB’s price. However, if the ETF ultimately gains approval from the SEC, such a development may have a significant positive impact on the crypto's future price.

What will it mean if a Spot BNB ETF application is approved?

If the SEC approves the Spot BNB ETF, it will likely lead to higher demand for BNB coin — as demand from investors for the product rises, VanEck will need to source more BNB to back its ETF shares. This increased demand would push the price of BNB higher. As noted above, BNB is one of the market's largest cryptos and features substantial trading volumes. Therefore, it's unlikely that a Spot BNB ETF would cause drastic rises in the coin’s price. However, a certain positive price effect is a safe bet, and the magnitude of the effect will be directly related to the popularity of the ETF among investors.

Additionally, the ETF will improve the visibility of the BNB ecosystem, potentially leading to more 

 (DApps) and projects launched on its blockchain.

If approved by the SEC, the Spot BNB ETF by VanEck would usher in a new era for the coin. For the first time ever, BNB as a financial asset would become available through the regulated environment of US stock exchanges. This would not only help support the coin’s price and expand the chain’s ecosystem, but would also be a major reputational gain for Binance, the world’s largest crypto exchange and the corporate entity behind BNB Chain.

Over the years, Binance has had its fair share of troubles and arguments with US regulators. A fully approved spot ETF based on Binance’s own coin would, therefore, send a signal to the crypto market that the major components of the Binance ecosystem — BNB crypto, BNB Chain’s blockchain and the Binance crypto exchange — aren’t as risky to deal with as some Americans may believe.

Intermediate

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BNB Spot ETF: A new gateway as BNB Chain evolves

In this article, we explore liquid staking protocol StakeStone's key features, the STO token launch, tokenomics and how to trade STO on Bybit.

StakeStone (STO) is a next-gen omnichain liquidity infrastructure protocol designed to optimize yield and cross-chain liquidity. Its introduction of liquid yield-bearing versions of ETH and BTC — STONE and STONEBTC — enables users to earn sustainable yield while enhancing capital efficiency. This article explores StakeStone’s architecture, core assets, founding team, tokenomics and recent market performance.

 is a decentralized liquidity infrastructure protocol that issues liquid, 

-bearing assets like STONE (Ethereum) and STONEBTC (Bitcoin). Designed for omnichain integration, it empowers users and protocols with composable 

 solutions and efficient cross-chain liquidity.

Launched in 2024, StakeStone was built to address the fragmented and capital-inefficient nature of ETH and BTC staking by introducing secure, flexible and modular primitives. StakeStone’s mission is to maximize on-chain yield while ensuring deep liquidity across ecosystems.

StakeStone was founded in 2023 by a team of DeFi-native builders led by Charles K, a crypto veteran with over 10 years of experience in centralized exchanges (CEXs), hardware wallets and DeFi infrastructure The core team includes Rose Li, Chief Strategy Officer, and Ivan K, Chief Marketing Officer.

The project has secured funding from notable crypto funds, including Polychain Capital, Binance Labs, OKX Ventures, Amber Group, HashKey Capital and Bankless Ventures. These backers not only provide capital but also strategic ecosystem access — positioning StakeStone as a serious player in omnichain liquidity and yield infrastructure.

StakeStone converts ETH and BTC into liquid, yield-bearing assets — STONE (ETH) and STONEBTC (respectively) — through a modular and omnichain framework. When ETH is staked, it flows into the StakeStone Vault and is allocated to the Strategy Pool, and STONE is minted via the Minter.

Yield is generated through strategies such as:

Users can deploy STONE across chains via the 

 (LP) rewards, with optional LP locking for enhanced returns. SBTC is the liquid BTC asset mirroring Bitcoin’s value, with STONEBTC adding a yield layer to BTC and unlocking passive income without sacrificing liquidity.

StakeStone implements key security measures, including the following:

STONE (ETH): Omnichain yield-bearing asset

 derivative. It’s minted when users stake ETH, and is backed by underlying yield from stETH, EigenLayer restaking and additional DeFi strategies.

STONE supports seamless cross-chain bridging, enabling deployment across supported networks and STONE-Fi Pools for additional rewards. Users benefit from passive yield, cross-chain utility, governance participation and on-demand liquidity.

SBTC is a liquid Bitcoin asset that mirrors BTC’s value and enables seamless use within EVM-compatible chains. STONEBTC, on the other hand, enhances SBTC by adding a yield layer, empowering users to earn yield from BTC-based strategies while preserving liquidity.

 utility by unlocking native BTC liquidity and enabling new use cases, such as cross-chain lending and borrowing, LP participation in BTC-based DeFi pools and composable integration across multichain DeFi protocols.

Together, SBTC and STONEBTC aim to position Bitcoin as an active capital layer across Ethereum and beyond.

 of StakeStone, with a total supply of 1 billion. It underpins protocol governance via OPAP proposals, voting-escrowed STO (veSTO) staking and 

Emissions are set to taper gradually until 2031, aligning incentives with long-term ecosystem growth.

According to CoinGecko, as of Apr 24, 2025, 

with a market cap of over $25 million. The token has recently shown strong momentum, rallying 85.4% over the past two weeks. Furthermore, StakeStone’s value could benefit from various catalysts, such as the rise in demand for 

 the STOUSDT Perpetual futures contract in the Innovation Zone, with up to 20x leverage.

 a Bybit account, complete identity verification and fund your 

 using crypto deposits or fiat currencies. 

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StakeStone (STO): Cross-chain liquid staking protocol

The MANTRA (OM) token’s wild crash on Apr 13, 2025, shocked the crypto world. Discover the causes, fallout, and what’s next in MANTRA’s road to recovery.

In the morning and daytime hours of Apr 13, 2025, the MANTRA blockchain's native token, OM, sat at a respectable market cap of $6 billion, making it the third-highest-ranked cryptocurrency in the 

 (RWA) category, the area the platform specializes in. Everything seemed like smooth sailing for the token.

Then, just after 6 PM UTC, the price of the OM token suddenly began to free-fall, declining from nearly $6 to about $0.50 in the space of just two hours.

A project that started the day as one of the top players in the RWA field was now worth 90% less as the evening approached. OM's abrupt, sharp crash immediately caught the market's attention, with speculation of a 

However, MANTRA's CEO, John Patrick Mullin, immediately sprang into action for PR damage control on social media, reassuring the public that the team members weren’t dumping OM tokens at all. Instead, MANTRA's founder and CEO alleged that deliberate actions of some 

 (CEXs) had caused the catastrophic plunge.

As of our coverage date of Apr 23, 2025, this is a developing story. In this article, we’ll establish what actually happened, who's involved and what awaits the OM token in the foreseeable future.

 decentralized network dedicated to RWA tokenization and utilization in compliance with real-world regulatory requirements.

 It features high scalability and low transaction fees. The project is one of the earliest initiatives dedicated to RWA use via blockchain technology. Originally, MANTRA debuted as a 

 (ETH) in August 2020. In October 2024, the project migrated to its own dedicated Layer 1 platform, the MANTRA Chain. The MANTRA blockchain is based on the Cosmos SDK framework, and is part of the wider 

The MANTRA ecosystem's main products include MANTRA DEX, a 

 (DEX); a digital identity (DID) management tool; a compliant token development and management solution; and a comprehensive compliance and permissioning system. MANTRA has also partnered with global powerhouses like Google Cloud, and with DAMAC Properties, one of Dubai's most prominent developers, to propel innovative solutions for 

Starting in late 2024, right after its own dedicated mainnet launch, MANTRA had become a significant player in the RWA corner of 

 (DeFi). By late February 2025, the platform’s native OM token had climbed to a value of nearly $9, with its market cap peaking at around $8.2 billion. Before the fateful events of Apr 13, 2025, OM was the third-highest-capped crypto in the RWA category, trading at $6.27, with a market cap of slightly over $6 billion, according to the CoinGecko portal.

In the evening hours (UTC time) of Apr 13, 2025, OM began to lose its value precipitously, dive-bombing from over $6 to about $0.52 in the space of two hours. The token’s market cap fell to slightly under half a billion dollars — a loss of more than 90%.

CEO John Mullin was quickly online, reassuring the crypto community that no team member had sold their OM holdings, and that this wasn’t a case of the bad ol’ rug pull. Instead, Mullin alluded that after OM tokens were moved to two leading CEXs (Binance and OKX) to use as collateral, the exchanges initiated a cascade of 

 of positions backed by the token. Both exchanges refuted the allegations, and connected OM’s price collapse to its recent unusually high price 

, and significant tokenomics changes made to OM in October 2024 that greatly undermined its value.

As a chain of liquidations took place, the token’s price started to plummet, causing significant panic that quickly led to further price drops. The situation only stabilized closer to the end of the day, with OM’s price remaining under $1. As of Apr 23, it’s trading at $0.5543 — a far cry from its rate of over $6 just two weeks ago.

After investigating, crypto analytics firm Lookonchain concluded that 17 wallets had deposited 43.6 million OM tokens (4.5% of the token's circulating supply) into the implicated exchanges. Two of these wallets are believed to belong to Laser Digital, one of MANTRA's investors. Another investor in the project, Shorooq Partners, is also suspected to be among the 17 wallets. Both Shorooq and Laser Digital have denied the allegations.

Although the price plunge was immediately compared to the 2022 collapse of the 

 (LUNA) blockchain, many analysts point out that the two crashes are fundamentally different. Terra's crash resulted from structural abnormalities in the 

 regulating UST, the project's stablecoin. In contrast, OM's fiasco is suspected to be the direct result of market-driven manipulation by 

, and possibly exchanges. No security breach, disruption to services or data, or other adverse structural events have occurred on the platform.

While this development is unprecedented for the project, MANTRA has been embroiled in other controversies throughout its history. One of these was its 

, first announced in August 2024 and then delayed multiple times. Around 50% of the wallets believed to be bots were cut off from the airdrop list. However, many considered the bot-culling process to have been conducted without much proof.

There have also been reports of vote rigging in the project's governance system in a bid to obscure MANTRA’s centralized model of profit allocation. Additionally, some analysts have accused the project of "forced bridging" to manipulate the market price. Platform users had to migrate their Ethereum-based OM tokens to MANTRA's native OM tokens via 

, which would increase gas fees and allow the project team to control the token's circulation pace.

How is MANTRA (OM) headed toward recovery?

MANTRA’s CEO rapidly reassured users that the team is now working hard to jump-start the token’s recovery. On Apr 14, 2025, Mullin unveiled plans to initiate a buyback scheme, along with the intent to burn all OM tokens held by the project team. The team's supply totals 300 million tokens, representing about 17% of the total supply.

He also denied factually incorrect assertions circulating online that the team effectively controls 90% of OM's supply. Mullin further assured the public that no large-scale selling events by investors have occurred.

As OM’s value has stayed firmly under $1, it remains to be seen how these PR efforts — as well as the planned buyback and burn — will affect the token’s future.

 as a swap pair with USDT, or on the Derivatives market as the 

Naturally, given the ongoing situation with the OM token, buying OM is at your own discretion, as right now the token is truly for the adventurous and brave at heart.

As of Apr 23, 2025, the OM token is trading at $0.5543, 93.8% lower than its ATH of $8.99 on Feb 23, 2025, and 3,138.8% higher than its ATL of $0.01726 on Oct 12, 2023.

Curiously, most crypto price prediction portals are optimistic about the OM token's long-term prospects. DigitalCoinPrice 

 of $1.81 in 2027 and $2.82 in 2030, whilePricePrediction 

It's hard to verify all the allegations flying around regarding the involvement of exchanges and key investors in the MANTRA OM incident. What matters at this stage is that the project team has been quick and proactive in injecting transparency and clarity into the situation.

The free fall in the token's price seems to be over by now. In fact, OM’s decline was over within hours of the incident. Moreover, unlike Terra's LUNA and UST coins, OM hasn't become worthless. All these factors point to potential stabilization and recovery ahead. The question now is: Will the pace and magnitude of the recovery be enough to save the project in the long term? At this early stage after the collapse, few people could answer the question with confidence. We'll eagerly await the developments over the next few weeks to see if MANTRA finds its way out of the woods. 

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MANTRA (OM): Understanding its wild ride and road to recovery

Candlestick

Trading

The Hanging Man pattern is a bearish candlestick indicating the bull momentum is losing, signaling a trend reversal is approaching. Learn how to react when hanging man appears.

Hanging-man-candlestick.jpg

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, the Hanging Man candle is a reversal candlestick pattern that appears at the top of a bullish trend and indicates a price reversal. Most price action traders use this pattern to identify the most reliable point to open a sell trade.

Candlestick chart trading has become popular in the cryptocurrency market. Moreover, its effectiveness helps traders find profitable trades in any financial market. Candlestick-based trading started in the stock market, but it has become effective with forex and cryptocurrencies as well. Therefore, modern cryptocurrency brokers use candlestick charts that make investing in crypto assets more profitable. 

The Hanging Man candlestick pattern provides similar price action as other formations, such as Hammer, Doji, and Shooting Star. However, it appears at the top of an upward trend and provides a possible bearish trend direction. Now, let’s get down to the nuts and bolts of the Hanging Man pattern in the cryptocurrency market.

What is a Hanging Man Candlestick Pattern?

The Hanging Man is a candlestick pattern (bearish candlestick) that appears at the top of a bullish trend and provides a bearish reversal pattern. After a long bullish trend, this pattern is a warning that the trend may reverse soon, as the bulls appear to be losing momentum. Although this pattern is not an indication of a trend change, it generates a message that the price has already made a top.

In a price chart, the Hanging Man candlestick pattern provides a warning sign for buyers who want to hold the price for further gain. For buyers, it helps to manage the trade by getting out of the market with a profit, ensuring some gain. On the other hand, for sellers, it indicates a possible entry point, contingent on other confirmations. 

Let’s see what the Hanging Man candlestick pattern looks like:

It has both bullish and bearish bodies but provides the same price direction by appearing at a significant resistance level or swing high. This candlestick pattern provides a story of the entire day’s price action, helping traders to anticipate the future price direction based on the past price action.

Interpreting the Hanging Man Candlestick Pattern

The Hanging Man looks like a hammer, as its opening and closing price remain closer with a long wick downside. For the pattern to work, the wick should be at least twice as long as the body. 

Price action traders are familiar with this type of pattern in a swing low. However, it introduces a different story about the market, which is important to understand. Although the Hanging Man has a long bearish wick like a hammer, it is still a bearish signal. The bearish wick indicates extreme bearish activity during the day that has failed to hold until closing. 

After the selling pressure, it’s important to understand how the daily candle is closing. If the closing price is higher than the opening price, it will be a bullish hammer. On the other hand, if the closing price is below the opening price, it will be a bearish hammer. 

Although the Hanging Man pattern is valid for both bullish and bearish bodies, it is more potent with a bearish body than with a bullish one. In the bearish pattern, buyers take the price higher before the daily closing, and the bearish close is a sign that bears are stronger.

The Hanging Man does not provide a sell signal, yet it signifies possible bearish pressure in the price. Traders can use the 

 to confirm the overbought condition at the Hanging Man to confirm the signal. Still, when two or more indicators provide the same price direction, traders can rely on it. More specifically, it’s essential to know how the next candle is forming. In general, any bearish daily candle after a Hanging Man pattern increases the possibility of upcoming selling pressure.

How Does the Hanging Man Correlate to Trend Reversal?

Trend trading is the most profitable trading style in any financial market. When big financial institutions and large investors join the market, a trend forms. On the other hand, the price in any financial market moves like a zigzag, with swing highs and swing lows forming. Any reversal candlestick formation from these swing levels provides the primary idea of price action trading.

Trend reversal happens when an opposing party enters the market and tries to change the price direction. However, the most significant sign of trend reversal is volatility at swing high/low. This volatility is a result of the pull between buyers and sellers, with an indecisive momentum. Later on, once the direction is set, the price is ready to move toward the opposite direction.

The basic concept of counter-trend trading is to find signs of buyers’ and sellers’ activity before setting the price direction. 

 like the Hanging Man indicate sellers’ footprint after a bullish swing. However, as the price moves with the swing low and swings high, you can use this candlestick pattern for both trend and counter-trend trading.

The Hanging Man is a trend reversal pattern with a long wick downside. Identifying this pattern is easy, as it has a small body and a long wick. However, traders may struggle to find the most profitable location of this pattern. Remember that this pattern works well from the top of a swing, and identifying the swing requires good basic knowledge about price trend, 

Although the Hanging Man pattern is a single candlestick, the trend-changing event happens once the candle is closed and the next bearish candle appears. While searching for the pattern, make sure to follow these guidelines:

Identify Enter and Exit Points with the Hanging Man Pattern

The primary requirement for the pattern is that it should appear after a bullish trend. In the cryptocurrency market, price moves by creating bullish and bearish swings. Finding a bullish trend requires multiple higher highs in the price. 

The above image is an example of an uptrend. The price is moving up by creating new highs. Although the price has some bearish candles, the bullish pressure remains strong. The primary indicator of a Hanging Man pattern is a bullish trend, such as this one, in which a corrective force in the bullish trend has a higher possibility of taking the price lower.

After that, identify the Hanging Man pattern at the top of a bullish trend. If this candlestick opens with a bullish gap, it’s a positive sign for sellers, but not mandatory. Remember that a valid/complete pattern should have a wick that’s at least twice as long as its body. In addition, any Hanging Man pattern from a significant resistance level is also valid. 

Traders should wait for a bearish candle after the Hanging Man pattern develops before opening a sell trade. After the pattern appears, the bearish daily candle indicates that sellers have a higher possibility of initiating a downtrend.

The aggressive approach of making a trade based on this pattern is to open a sell stop order below the candle’s low. Usually, the stop loss is placed above the candlestick pattern, with some extra buffer to protect yourself in case of false breakouts. At the same time, the take profit will be based on the trend’s strength and nearby support levels.

Success in cryptocurrency trading depends on how you manage trades. The global financial market becomes uncertain when any unexpected move occurs. Although you’re trading a Hanging Man pattern from a swing high with a proper sell entry, there’s still the possibility of losing money.

First, let’s see how a bullish trend forms for BTCUSD before the Hanging Man pattern appears.

In the above image, we can see that the price moves higher by creating higher highs. Then, as soon as the pattern forms at $64,000, the price changes its direction. Here the change in direction is confirmed as soon as the price makes a bearish daily close after the formation.

The next day, if the price moves above the Hanging Man’s high, the bearish possibility will be invalidated. Therefore, the stop loss should be above the candle’s high, and the take profit will be based on near-term support levels. However, traders can use multiple take-profit levels to minimize the risk associated with the market.

Hanging Man vs. Hammer vs. Shooting Star: The Differences

These three patterns are almost similar and may confuse traders. However, if you understand the core logic of each pattern, you can easily differentiate them.

The comparison of the hammer, hanging man, and shooting star candlestick.

In the above image, we see the visual representation of these candlestick patterns. The Hanging Man and Hammer look similar, but the trend from opposite directions. On the other hand, the Hanging Man and Shooting Star provide the same price direction, though there is an important distinction between their structures: the Hanging Man has a long shadow below the body, while the Shooting Star has a long upper shadow. 

The Hanging Man and Shooting Star appear at the top of an uptrend. Both bodies have a long wick, at least two times longer than their bodies. On the contrary, the Hanging Man and Hammer provide a trend reversal signal, in which the key difference is the nature of their trend.

Each of these candlesticks provides a reliable result in the daily chart, as every one of them can show the entire price action of the day. Traders can use these patterns in intraday trading, but it may require additional confirmations from other dependable indicators.

The Hanging Man is a profitable price reversal indicator that appears after a bullish trend. However, there is no guarantee that the price will rebound after forming this pattern. It provides the highest accuracy from a significant resistance level with a volatile bullish trend. Moreover, after a Hanging Man pattern forms, traders should wait to see how the next candle forms. The pattern is valid if the next candle is bearish and closes below the Hanging Man’s shadow.

On the other hand, this pattern may fail from any random place, as demonstrated in the image below:

Overall, the success of the Hanging Man in trading depends on how traders utilize this candlestick with an appropriate trading strategy. Traders can use this pattern as an additional confirmation to reduce risk.

Indicators to Confirm the Signal from a Hanging Man Candlestick Pattern

The Hanging Man pattern does not provide any sell signals, so traders should consider other tools, like price action or other indicators, to increase trading probability.

The formed pattern from a significant resistance level may work as an additional confirmation of upcoming bearish pressure.

In the above image, the Hanging Man pattern develops near a resistance level on this ETH/USD Chart. As soon as the candle low is broken, the price moves lower with an impulsive bearish pressure.

Another approach is to use a moving average indicator to find the price swings. A moving average (MA) shows the average price of the last specified period of candles, and it moves with the price. Therefore, if the gap between the price and the MA extends, the price and the MA have a higher possibility of coming together to minimize the gap.

In the above image, we can see the gap between the 20 EMA and the price expands while the price forms a Hanging Man pattern near a resistance level. Subsequently, the price moves lower toward a dynamic 20 EMA, proving a 1:2 risk-to-reward ratio.

The Hanging Man formation is a single candlestick pattern that appears at the top of an upward trend and signals a potential change in the trend direction. Although this candlestick is similar to the Hammer and Shooting Star, there are some key differences in price direction and formation. This pattern is validated once it forms from a significant resistance level and its daily low is broken.

Still, traders should closely monitor price action using other candlesticks to increase the trading probability. Moreover, strong trade management and strategic trading strategies are required in order to get a reliable outcome from any candlestick-based trading.

Candlestick Patterns Professional Traders Use

 – A curated list of candlestick patterns most frequently used by traders

 – Learn the basics of candlestick patterns

 (Chart basics: trend, neckline, wedges)

How to Use Hanging Man Candlestick Pattern to Trade Trend Reversal

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How to Use Hanging Man Candlestick Pattern to Trade Trend Reversal

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