After sellers caused a high volatility break below the $1.9 level in late April, Decentraland (MANA) saw a series of consistent declines alongside lower highs on the chart. The three-week trendline resistance provided a strong selling point for mitigating last month’s bull runs.

A robust close below the $1.2 resistance would place MANA in a tight phase near its high liquidity range, represented by its Point of Control (POC, red). At press time, MANA was trading at $1.2161, down 2.21% in the past 24 hours.

MANA 4 Hour Chart

Source: TradingView, MANA/USDT

After MANA slipped off its ATH, it found an overshoot range between $1.7 and $3.3 for nearly three months. But as selling pressure mounted on the $1.7 floor, sellers were quick to apply a sharp drop toward the $0.6-$0.7 range. Immediate trendline resistance has supported the bearish story by keeping the bull rallies on the line.

As a result, the altcoin plunged to reach its seven-month low on May 12. However, in the past five days, MANA rose in an up-channel (yellow) on the four-hour chart. After the price breaks out of the $1.3 zone, it could enter a squeeze phase for the next few sessions. A plausible bullish crossover of the 20 EMA (red) and 50 EMA (cyan) would help buyers gain some momentum to challenge the trendline resistance bands.

A convincing close above the USD 1.2 level coupled with a 20/50 EMA bullish crossover would set the stage for a recovery above the USD 1.3 zone. But an inability to maintain current levels would pull MANA towards its POC before taking a trend move.

rode

Source: TradingView, MANA/USDT

The alt’s Relative Strength Index managed to hold itself above the midline while testing its 63-point resistance. A sustained compression phase above the midline could help buyers gain a slight edge on the charts.

On the other hand, the CMF marked a bearish divergence with the price as it fell to its zero point. A sustained close below this line could delay the potential recovery outlook for MANA.

Conclusion

Should the price close above the 20/50 EMA near the $1.2 mark, buyers would claim a small advantage in the short-term trend. In that case, the $1.3 zone would be critical for them to tip over to open doors for a possible bull run. But looking at the weak buy volumes, MANA saw itself swinging near the POC before making a strong move on both sides.

Finally, the alt shares a whopping 90% 30-day correlation with Bitcoin. So it would be useful to keep an eye on the movement of the king coin to make a profitable bet.



This post For example, MANA’s price could react to current market sentiment

was published first on https://ambcrypto.com/heres-how-manas-price-could-respond-to-the-current-market-sentiment/

Author

Write A Comment