Decentraland Price Prediction: A 20% rally for MANA is possible
- Dentraland price hovers above two vital moving averages.
- The volume profile indicator shows a tapered look following the last rally.
- Invalidation of the bullish thesis is a breach below $0.61.
Decentraland price could rally once more to challenge newly established shorts.
Decentraland price has upside potential
Decentraland price could be setting up for a countertrend rally targeting the September highs. Last month, the Ethereum-based gaming token witnessed a 23% rally, printing a last-minute October high at $0.73. Despite the current sell-off in the market due to profit-taking activities, subtle evidence suggests one more wave up could occur. Key levels of interest would be the 2020 triangle apex between $0.78 and $0.80.
MANA price currently auctions at $0.65. The profit-taking consolidation has forged a 10% market value loss following October's last-minute rally. The volume profile indicator suggests the sell-off is due to reverse eventually, as the bears have not produced a candle stick of equal volume to the strongest bullish candles.
MANA./USDT 1-Day Chart
The 8-day exponential moving average is currently being tested as support. If the bulls fail to hold their ground, a test of the 21-day simple moving average will occur near $0.63 for an additional 5% decline.
Still, the uptrend's health will remain intact so long as the lows at $0.58 remain unbreached. If the bears happen to tag the lows, traders should expect a further decline toward the 2020 liquidity levels near $0.50. Such a move would result in a 23% decline from the current market value.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
