Decentraland: MANA reaches a resistance zone, is it time to go short?
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Decentraland is without doubt one of the largest metaverse tasks within the crypto ecosystem, however its token MANA has been on a gradual downtrend in current weeks. After a short foray beneath the $0.72 assist, the value has rallied by a formidable 80%. Nevertheless, this rally could be close to its finish, and rejection at a resistance zone may 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. Despite the fact that MANA has seen an enormous rally prior 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 truth that sellers have been profitable in pushing costs beneath this space reveals there may be probably no straightforward path to restoration within the weeks to return, and additional draw back can’t be discounted within the weeks to return.
On the decrease timeframes, there may be sturdy proof that heavy shopping for quantity drove MANA to the $1.3 zone. Nevertheless, this doesn’t characterize a shopping for alternative, however as an alternative, provided a chance to promote or brief the asset.
Rationale
Supply: MANA/USDT on TradingView
The MACD was nicely above the zero line, and the MACD line (blue) was above the sign line (orange) to indicate a powerful purchase sign. Nevertheless, prior to now 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 development 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 symptoms confirmed sturdy bullish momentum and demand behind MANA, however a bearish divergence additionally urged {that a} pullback may happen. Such a pullback may see MANA retest the $1 assist stage. Based mostly on Bitcoin’s course, the token may both drop additional beneath $1 or, alternatively, discover extra demand and rally towards $1.3 as soon as once more.
