Decentraland price consolidation could lead to a breakout rally beyond $1
- Decentraland price has formed an Adam and Eve setup on the weekly chart.
- A decisive breakout from the neckline at $0.788 forecasts a 64% upswing to $1.292.
- A weekly candlestick close below $0.542 will invalidate the bullish thesis for MANA.
Decentraland (MANA) price consolidation seems to be entering the last stage as it prepares for a breakout. If successful, this move could yield double-digit gains for long-term and patient MANA holders.
Also read: Avalanche price could rise 20% on gaming narrative ahead of GDC conference
Decentraland price sets the stage for a climb
Decentraland price has been consolidating below the $0.788 resistance level for 575 days and is currently approaching key levels. During its nearly two-year consolidation, MANA created an Adam and Even setup, which is a bottom reversal pattern.
This technical formation contains two bottoms—the first one has a sharp v-shaped recovery, and the second one is rounded. The pattern forecasts a 64% rally to $1.292 on a successful breakout of the neckline at $0.788, obtained by adding the distance between the second bottom’s depth and the breakout point.
Considering the Relative Strength Index (RSI) has recently retested the overbought zone, a retest of the 50 mean level would increase the probability of a breakout. Until this happens, Decentraland price will likely be stuck between $0.788 and $0.542 barriers.
Also read: Arbitrum Arcade launch could fuel narrative for crypto gaming tokens
MANA/USDT 1-week chart
While the outlook for Decentraland price remains bullish in the long-term, a short-term spike in selling pressure could trigger a correction for MANA. In such a case, if Decentraland price breaches $0.542, it would create a lower low and invalidate the bullish thesis.
Such a development could attract panic selling and knock MANA down by 22% resulting in a retest of the January 29 swing low at $0.423.
Also read: Gaming tokens surge, in spillover effect from Bitcoin price rally: GALA, SAND, ENJ, BEAM, APE
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
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.
