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Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Decentraland is among the largest metaverse tasks within the crypto ecosystem, however its token MANA has been on a gentle downtrend in latest weeks. After a quick foray beneath the $0.72 help, the value has rallied by a powerful 80%. Nonetheless, this rally may be 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
Supply: MANA/USDT on TradingView
The $1.25-$1.35 space (purple field) is a better timeframe zone of provide for MANA, which had acted as a requirement zone earlier this month. Regardless that MANA has seen an enormous rally previously 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 truth that sellers have been profitable in pushing costs beneath this space exhibits there’s probably no simple path to restoration within the weeks to come back, and additional draw back cannot be discounted within the weeks to come back.
On the decrease timeframes, there’s sturdy proof that heavy shopping for quantity drove MANA to the $1.3 zone. Nonetheless, this doesn’t signify a shopping for alternative, however as a substitute, supplied a possibility to promote or brief the asset.
Rationale
Supply: MANA/USDT on TradingView
The MACD was effectively above the zero line, and the MACD line (blue) was above the sign line (orange) to indicate a powerful purchase sign. Nonetheless, previously 24 hours, the MACD made a decrease excessive whilst the value made a better excessive. This can be a bearish divergence, and its significance is enhanced because it occurred proper beneath a zone of provide.
The DMI confirmed a powerful bullish pattern in progress after the almost 80% pump from the $0.7 lows a few days in the past. Equally, the OBV additionally spiked upward and has damaged the prior downtrend.
Conclusion
The indications confirmed sturdy bullish momentum and demand behind MANA, however a bearish divergence additionally recommended {that a} pullback might happen. Such a pullback might see MANA retest the $1 help stage. Based mostly on Bitcoin’s route, the token might both drop additional beneath $1 or, alternatively, discover extra demand and rally towards $1.3 as soon as once more.
