Decentraland price eyes 15% upswing as MANA faces a resistance level confluence
- Decentraland price is bouncing off the daily demand zone, extending from $2.20 to $2.82, hinting at an uptrend.
- MANA will face the weekly resistance barrier at $3.26 and the liquidity resting above $3.39 on its uptrend.
- A breakdown of the demand zone’s lower limit at $2.20 will create a lower low, invalidating the bullish thesis.
Decentraland price seems to be retesting a crucial confluence of support levels, which could trigger an uptrend. While bullish, MANA will face multiple barriers that are likely to cut this bull rally short.
Decentraland price vies to trend higher
Decentraland price has retested a bear trend line two times since November 29, 2021, swing high $5.24. MANA has also bounced off the daily demand zone, stretching from $2.20 to $2.88 four times since November 16.
As a result, Decentraland price seems to be consolidating between a strong support and a declining trend line. Currently, MANA is bouncing off the said daily demand and the 100-day Simple Moving Average (SMA) at $2.82.
Therefore, the resulting upswing is likely to trigger a 10% ascent to the weekly resistance barrier at $3.26. Investors can expect MANA to wick higher and collect the liquidity resting above $3.39, bringing the total gain to 15%.
Although unlikely, in a highly bullish case, Decentraland price could retest the 50-day SMA at $3.63.
MANA/USDT 4-hour chart
Regardless of the bullish outlook, if the Decentraland price fails to hold above the 100-day SMA at $2.82, it will indicate weakness. Increased selling pressure that knocks MANA to produce a four-hour candlestick close below the said demand zone’s lower limit at $2.20 will create a lower low.
This development will skew the odds in the bears’ favor and invalidate the bullish thesis for Decentraland price.
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.
