MANA could see these levels before a trend committal move
Since late November, Decentraland (MANA) has been on a steady downtrend while the bulls were adamant about defending the $2-support.
Now, with the recent increase in selling pressure, the buyers could find it tricky to find a close above the current pattern. A reversal from the $2.3-zone could propel a restest at the $2.1-base before MANA makes a trend commital move. At press time, the alt traded at $2.3162, up by 2.84% in the last 24 hours.
MANA Daily Chart
Source: TradingView, MANA/USDT
After a gradual downslide from its ATH, the alt lost over 70% of its value and poked its 11-week low on 22 January. Since then, MANA saw a solid recovery before reversing from its three-month trendline resistance. Post which, it descended below its 20 EMA (red) and 50 EMA (cyan).
Over the past month, MANA fell in a falling wedge on its daily chart. The price has entered into a tight phase in the last three weeks. Thus, increasing the chance of a possible volatile phase in the days to come. The recent bearish engulfing candlestick created a strong supply zone for the alt in the $2.3-$2.5 range.
From here on, any close above the current resistance could lead to a test of the upper trendline of the wedge before a test of the $2.1-base. Following this, any patterned breakouts could find a tough time overturning the supple zone. While the 20 EMA approached closer to the 200 EMA, a bearish crossover would reaffirm the near-term bearish force.
Rationale
Source: TradingView, MANA/USDT
The RSI swayed sideways for the past five days and resonated with the price for the most part. Going forward, any bullish comebacks could find resistance near the 44-mark.
Further, the CMF steeply fell below the zero-line as it looked south. This reading hinted at the
Read more on ambcrypto.com
