Decentraland price must hold key support to avoid correction to $2.70

Decnetraland price action has tested the bottom of the Ichimoku Cloud (Senkou Span A) at $3.15 for the past five trading days as support. $3.15 has thus far held, but the frequency of the tests has caused some concerns for bulls.

Decentraland price must hold above Senkou Span A to prevent a correction

Decentraland price, like the rest of the cryptocurrency market, suffered some strong selling after US CPI data temporarily tanked risk-on markets. MANA hit a new five-day low due to the sell-off, but it promptly recovered that entire loss to return to the Thursday open.

The longer bulls can keep Decentraland price above Senkou Span A; the Tenkan-Sen will eventually move closer to Senkou Span A and create a solid near-term support level. The combined support of Tenkan-Sen and Senkou Span A would help limit the downside risks associated with the volatility of being inside the Ichimoku Cloud.

The Ichimoku Cloud represents volatility, indecision, whipsaws, pain, anxiety, and misery. It is a place traders do not and should not participate. It is the place where trading accounts go to die. If Decentraland price can’t hold $3.15, the next support level is the Kijun-Sen at $3.70.

Ideally, Decentraland price will close above the Ichimoku Cloud, eliminating most of the volatility and creating a new bullish breakout setup. The earliest that this can occur is $3.88. However, by February 21, that threshold drops to $3.31.

Decentraland price must achieve a close above the Ichimoku Cloud before creating a new uptrend towards the $6 value area.