Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Decentraland registered a low in May at $0.629. It hasn’t been this low in June and has even built up a range in the past week and a half. At the same time, Bitcoin has found some support at $19.8k-$20.1k.
Over the next two weeks, an upward move for Bitcoin could see MANA register gains. But as things stand, momentum and selling pressure has been in bearish hands behind Decentraland.
MANA- 12 hour chart
Since late December, MANA has been in a longer time frame downtrend. The April and May price action marked this downtrend. A series of lower highs and lower highs was seen on the chart.
The low formed in May was $0.629 while the June low remained at $0.725. The fact that last month’s low was not broken may be a sign of encouragement. The USD 0.92 and USD 0.753 levels have acted as a resistance and support for the past ten days.
Severe downward trends would typically be followed by a long period of accumulation. The range that MANA formed could be that accumulation phase. However, it only lasted ten days. After a downtrend for nearly six months, it would likely take many more weeks of varying price action to bottom out.
It has already been highlighted that the USD 0.92 and USD 0.753 levels were the ones to watch out for. This information was important for context in understanding the indicators. The RSI and the Awesome Oscillator were below the neutral 50 and zero lines respectively.
This showed that the downward trend was not over yet. Instead, the higher lows on the indicators suggested that downward pressures could ease.
The CMF also rose past the zero level showing that the selling pressure was no longer significant. While this was not in itself a trend reversal signal, it was something to be aware of.
On the other hand, there was no break in the downtrend on the OBV. This indicates a lack of buying volume over the past week, despite range building.
Price action remained bearish on higher time frames, although the H12 and lower time frames indicated a weakening of bearish momentum. In the north, the USD 0.92 and USD 1 levels are said to be critical resistance levels. A move back below $0.75 would likely cause MANA to register new lows.
This post Decentraland forms a range after severe downtrend, is this the bottom?
was published first on https://ambcrypto.com/decentraland-forms-a-week-long-range-after-severe-downtrend-is-this-the-bottom/