Cryptocurrency

Decentraland: MANA reaches a resistance zone, is it time to go short?

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation

Decentraland is one of many largest metaverse initiatives within the crypto ecosystem, however its token MANA has been on a regular downtrend in current weeks. After a temporary foray beneath the $0.72 assist, the value has rallied by a powerful 80%. However, this rally is perhaps close to its finish, and rejection at a resistance zone might happen over the following day or two for the crypto asset.

MANA- 1 Hour Chart

Source: MANA/USDT on TradingView

The $1.25-$1.35 space (pink field) is a larger time body zone of provide for MANA, which had acted as a demand zone earlier this month. Even although MANA has seen a enormous rally up to now couple of days, its longer-term market construction stays bearish.

The final time that MANA traded beneath the $1.3 mark was in October 2021. The indisputable fact that sellers have been profitable in pushing costs beneath this space reveals there is seemingly no simple path to restoration within the weeks to come, and additional draw back can’t be discounted within the weeks to come.

On the decrease timeframes, there is sturdy proof that heavy shopping for quantity drove MANA to the $1.3 zone. However, this doesn’t signify a shopping for alternative, however as a substitute, provided a chance to promote or quick the asset.

Rationale

DecentralandL: MANA reaches a resistance zone, time to short?

Source: MANA/USDT on TradingView

The MACD was properly above the zero line, and the MACD line (blue) was above the sign line (orange) to denote a sturdy purchase sign. However, up to now 24 hours, the MACD made a decrease excessive at the same time as the value made a larger excessive. This is a bearish divergence, and its significance is enhanced as it occurred proper beneath a zone of provide.

The DMI confirmed a sturdy bullish development in progress after the practically 80% pump from the $0.7 lows a couple of days in the past. Similarly, the OBV additionally spiked upward and has damaged the prior downtrend.

Conclusion

The indicators confirmed sturdy bullish momentum and demand behind MANA, however a bearish divergence additionally advised that a pullback might happen. Such a pullback might see MANA retest the $1 assist degree. Based on Bitcoin’s course, the token might both drop additional beneath $1 or, alternatively, discover extra demand and rally towards $1.3 as soon as once more.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button