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
Disclaimer
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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?
was published first on https://coingape.com/markets/mana-price-analysis-3-reclaim/
