Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
In the altcoin market, there were instances where coins broke through their market structure on the lower time frames and showed a bullish bias. Decentraland was one of these coins. Still, the general sentiment around the crypto market was mostly fear.
In such a market, trying to buy crypto assets can lead to realized losses for a trader. So patience could be the key. A bearish break can be used to enter a short position instead.
MANA- 1 hour chart
In recent days, MANA registered a swing low at $0.74, but has since made a series of higher lows. At the same time, the price also managed to close out a session above a previous lower high.
This marked a break in the previously bearish market structure. The trendline support (yellow) has been respected so far. It could also continue to act as a support over the weekend.
In the north, the USD 0.91 and USD 0.95 levels are likely to act as resistance. Therefore, long positions, while risky, can try to make a profit in that region. A stop-loss support below $0.8 may also be considered.
The RSI hovered around the neutral 50 line to indicate the lack of strong momentum behind MANA. On the other hand, the A/D line has made higher lows next to price. This meant that there was considerable buying volume behind MANA’s rally from the low of USD 0.74.
The Stochastic RSI has moved into oversold territory. A bullish crossover on this indicator can help access scalp long positions on MANA.
Under the current market conditions, buying Decentraland, even for a short upward move, is quite risky. Instead, risk averse traders should wait until the $0.9 area has been tested to consider going short.
A southerly move for Bitcoin could cause MANA to quickly lose its recent gains. Notably, at the time of writing, Bitcoin dropped below $20,000 to trade below the record set in 2017.
This post Can MANA’s Bullish Intent Become a Reality Despite BTC Dropping Below $20k. drops
was published first on https://ambcrypto.com/can-manas-bullish-intent-materialize-despite-btc-falling-below-20k/