Decentraland Price Prediction: MANA likely to rally 18% as bears face the ax

Decentraland price has been retesting a crucial support area for roughly two weeks. Although it seems the altcoin lacks volatility, it is forming a bullish setup, suggesting that a reversal is around the corner.

Decentraland price prepares to U-turn

Decentraland price tagged the $2.78 support level thrice, starting from January 6, giving rise to a triple bottom setup. Interestingly, this setup formed after MANA dropped 33% and retested a demand zone, extending from $2.20 to $2.87.

Since the reversal pattern is formed inside the demand zone, the chances of a reversal are high. Therefore, investors can expect the Decentraland price to make a 12% run to the immediate weekly resistance barrier at $3.26. 

Clearing this hurdle seems likely considering the buy-stop liquidity resting above the $3.39 hurdles, which coincides with the 50-day Simple Moving Average. Therefore, investors can expect MANA to surge an 18% in total.

MANA/USDT 4-hour chart

While things are looking up for Decentraland price, increased selling pressure that causes MANA to slice through the $2.78 support level will indicate a weakness among buyers. This development, albeit ephemeral, is not one that the bulls cannot recover from. However, if Decentraland price produces a four-hour candlestick close below $2.20, it will create a lower low, invalidating the bullish thesis.

In this situation, there is a good chance MANA will revisit the $1.49 support level, where buyers can choose to make a comeback.