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Decentraland experiences wild price swings but MANA may continue slide to $2

  • Decentraland price losses as much as 16% on Wednesday, to rally more than 18% on Thursday before settling on Wednesday’s opening price.
  • MANA’s present position within the Ichimoku Kinko Hyo system points to a bearish bias.
  • A combination of weak hands and profit-taking is likely to push Decentraland to the $2 value area.

Decentraland price is very close to confirming one of the most sought-after short-entry setups in the Ichimoku Kinko Hyo system: the Ideal Bearish Ichimoku Breakout. If confirmed, a prolonged downtrend is highly probable.

Decetraland price sees bulls and bears battle for dominance

Decentraland price could be positioning for a more extended downswing than initially anticipated. The Ideal Bearish Ichimoku Breakout was recently confirmed on the Wednesday close after fulfilling all of the requirements for that short entry. The conditions for that entry are as follows:

  1. Future Senkou Span A below Future Senkou Span B
  2. Tenkan-Sen below the Kijun-Sen
  3. The current close is below the Tenkan-Sen and the Kijun-Sen
  4. The current close is below the Cloud
  5. Chikou Span is below the bodies of the candlesticks and in open space
    1. Open space is a condition where the Chikou Span would not intercept the body of any candlestick horizontally over the next five to ten periods.

All of the conditions above were fulfilled on Wednesday’s close. Decentraland price, today, has made several attempts to return above Senkou Span B and the Kijun-Sen, but those efforts have been rebuffed. As a result, this current test of the breakout below the Cloud, if it holds, will likely generate some substantial selling pressure.

MANA/USDT Daily Ichimoku Chart

Because Decentraland price has yet to make a standard 50% retracement from its recent bull run, a return to the 50% Fibonacci retracement at $2.00 is likely.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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