Decentraland's MANA token primed for another downswing before 20% rebound
|- Decentraland price is currently losing the 70.5% retracement level at $3.47 as support, indicating a minor dip.
- A retest of the next barrier at $3.18 is likely to trigger an 18% ascent to $3.77.
- A breakdown of the range low at $2.47 will invalidate the bullish thesis.
Decentraland price might provide a ‘buy’ opportunity before the buyers make a comeback and trigger a minor upswing. Investors need to pay close attention to one vital support level where the reversal is likely to occur.
Decentraland price eyes a comeback
Decentraland price dropped 41% from its all-time high at $5.89 to where it currently trades - $3.44. This downswing was a result of the market crash witnessed on December 4. While the recovery was swift, the buyers seem to be running out of momentum, resulting in another downtrend.
This correction could serve as an opportunity for a quick long position if MANA bounces off the 79% retracement level at $3.19. The resulting Decentraland price action will likely propel the gaming token to slice through the immediate barrier at $3.48 and tag the next one at $3.71.
The climb from $3.19 to $3.77 would represent an 18% ascent. However, if the buying pressure builds up, Decentraland price could head higher to retest the trading range’s midpoint at $4.18, indicating a 31% gain in total.
MANA/USDT 4-hour chart
While this upswing is likely, it is contingent on Decentraland price bouncing off the 79% retracement level at $3.19. If buyers fail to come back around this barrier, investors can expect MANA to continue its descent to the range low at $2.47.
Here, the bulls can make a comeback, but if the Decentraland price produces a lower low below it, the bullish thesis will face invalidation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.