The MANA/USD pair has seen a significant rally over the past week, signaling a break from the correction phase. In addition, the tech map accentuates the current recovery by revealing a cup and handle pattern. This pattern should help decentraland buyers break the USD 2.9 weekly resistance.
Main technical points:
The buyers of Decentraland (MANA) have flipped the dynamic 20 DMA resistor to support.
The intraday trading volume in the MANA is $4.9 billion, indicating a 27% decline.
Source- Trading Display
During the correction phase in the Decentraland (MANA) price, the alt price resonated in a falling wedge pattern in the daily timeframe chart. This pattern has helped bears sell in rallies and tumble the coin towards the 0.786 Fibonacci retracement level ($1.7).
However, during the last week of January, buyers made a 40% price recovery from the USD 2 support. The coin price poked through the resistance trendline of the pattern, reaching $2.88 by the end of the month.
MANA/USD buyers managed to keep the coin price above 200 DMA, indicating that the bullish trend has remained intact. In addition, the recent recovery has flipped the 20 DMA into a possible support level.
The daily-Relative Strength index(48) supports this rally with an impressive recovery from oversold territory.
MANA price reflects a pattern for cups and handles
Source- Trading Display
The V-shaped recovery in price action shows the formation of a cup and handle pattern. The price of Decentraland (MANA) structuring the handle portion of this pattern should lead the price towards the $2.9 neckline.
A bullish breakout and a daily close above the combined resistance of 50 DMA and $2.9 would see a 20% rally towards $3.5 and better confirmation for a recovery rally.
However, if buyers fail to sustain the handle portion above $2.45, the alt will move towards $2, which should confirm buyers’ interest in this support.
Resistance Levels- $2.9 and $3.5
Support Levels- $2.45 and $2
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About the author
I have been working in journalism for the past 5 years. I follow the Blockchain & Cryptocurrency of the past 3 years. I have written on a variety of topics including fashion, beauty, entertainment and finance. contact me at brian (at) coingape.com
This post MANA Price Analysis: Why Decentraland Price May Reclaim $3 Mark Soon?
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