Bitcoin has been unable to climb past the 39k resistance in recent days, although it did find some demand at the $36.4k level. In the last 24 hours prior to press time, Bitcoin Dominance has fallen slightly from 41.85% to 41.37% (at time of writing).
This suggested that the altcoin market made slightly more gains than Bitcoin (in terms of market cap) from the previous day. MANA saw a price increase of $2.45 the day prior to the time of writing. But the question remained: did the market turn bearish again, or was it just a pullback for further gains?
A string of Fibonacci retracement levels (yellow) was drawn based on the move of MANA from $3.19 to $1.7 in January. A resistance area was identified in the USD 2.1 zone, which also coincided with the 23.6% retracement level. Then this area of past supply was flipped to one of demand (cyan box) and the price has steadily increased to reach $2.87.
The highest point in the uptrend over the past few weeks is set at $2.83 and MANA saw a drop to $2.45.
As per the charts, the price was in a low time frame trend upwards until reaching USD 2.83, and shortly after that, the price also broke below the USD 2.62 level. This can be interpreted as a break in the market structure.
At the time of writing, the price was approaching the top of a rising wedge, shown in white. This suggested that a session close to the pattern could see MANA recover a significant portion of its recent gains.
Unless the price can climb back above $2.74, it can be considered an area where there is a short-term selling opportunity.
The RSI on the hourly chart climbed above the neutral 50 and no deviations were seen while the price was trading within the wedge. The OBV showed that MANA has seen some sales volume after hitting $2.87. It can be expected to break above the level indicated on the OBV to bolster the bullish argument.
The $2.74 and lower trendline of the wedge pattern are levels to watch for the next few hours. A move below the pattern could cause MANA to fall again.
Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
This post MANA Is Forming A Bearish Pattern After Making Gains Over The Last Week, But…
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