Decentraland price coils up before MANA explodes by 22%
- Decentraland price is hovering around the $3.16 support level and has tagged it for the third time.
- A bounce off this barrier could be the key to triggering a 22% rally to $3.96 for MANA.
- If the $3.16 support level breaches, it will invalidate the bullish thesis.
Decentraland price is at an inflection point and will likely catalyze a massive run-up. This outlook, however, depends on how MANA bounces off the support level it is hovering around.
Decentraland price looks ready for a move
Decentraland price has been hovering around the $3.16 support level for roughly a week. So far, MANA has touched this support level thrice, giving rise to a triple bottom setup. This bottom reversal pattern combined with the consolidation suggests that the Decentraland price is ready for an explosive move.
The $3.43 resistance barrier is the first hurdle Decentraland price will face on its journey north. Clearing this blockade will allow buyers to step on the pedal, propelling Decentraland to $3.65.
If Decentraland manages to push past $3.65 and the buying pressure continues to hold up, MANA is likely to make a run for the $4 psychological level.
Traders can take advantage of this opportunity by entering long at the current position and taking profit at $3.65.
MANA/USDT 4-hour chart
On the other hand, Decentraland price could fail to bounce off the $3.16 support level. If the selling pressure increases, pushing MANA to produce a four-hour candlestick close below $3.16 will create a lower low.
If this barrier is shattered, it will invalidate the triple bottom’s bullish outlook and likely trigger a 4% crash to $3.01.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
