Decentraland price presents buying opportunity before returning to $3.25
|- Decentraland price develops a buying opportunity on its $0.20/3-box reversal Point and Figure chart.
- MANA recently converted to a bull market.
- Risks of further downside pressure remain a concern.
Decentraland price has met with responsive buying over the past two weeks but is currently lagging many altcoins. Buyers have found difficulty pushing MANA to a close above $2.50 but continue to pursue that goal.
Decentraland price positioned for another bull run
Decentraland price converted into a bull market on its Point and Figure chart on February 7, 2022, when MANA moved to $3.60. Sellers came in and created a new reversal column of Os. The pullback is viewed as a signal of strength, not weakness, with entry opportunities forming from that O column.
The hypothetical long trade setup is a buy stop at the three-box reversal of the current O-column, currently at $3.20 with a four-box stop loss ( $2.40 at publication) and a profit target at $6.60. As Decentraland price moves lower, the entry and stop-loss move in tandem, but the profit target remains unchanged.
A slight pause in upwards momentum may occur at $3.60, where a triple-top would develop. Still, given the momentum across the entire cryptocurrency space, there is a high probability that Decentraland price may move right through the triple top.
MANA/USDT $0.20/3-box Reversal Point and Figure Chart
A two to three-box trailing stop would help protect any profit made post entry. The trade represents a 4.25:1 reward for the risk. The long idea is invalidated if the current O column breaks the bull market trendline by moving to $2.00 before the long entry is triggered.
Downside risks should be limited to the 50% Fibonacci retracement at $2.00, where Decentraland price has previously found substantial buying support.
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