|

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

  • Decentraland price has formed a triple bottom setup at $2.78, hinting at an 18% rally.
  • Investors can expect MANA to kick-start an uptrend since this pattern is formed in a $2.20 to $2.87 demand zone.
  • A breakdown of the $2.20 support level will invalidate the bullish thesis.

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

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.

Author

Akash Girimath

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.

More from Akash Girimath
Share:

Editor's Picks

Ripple Price Forecast: Sellers retain control as Evernorth Holdings files with SEC to buy more XRP

Ripple’s (XRP) correction on Monday is deepening below $1.30, reflecting growing headwinds in the broader cryptocurrency market. Based on the token’s technical picture, the path of least resistance could stay downward until the $1.30 supply area flips into support.

Bitcoin stalls around $80,000 as geopolitical tensions dampen risk appetite

Bitcoin hovers around $80,500 on Monday after three straight weeks of correction. Rising geopolitical tensions in the Middle East continue to push oil prices higher, stoking inflation concerns and dampening risk appetite.

Crypto Today: Bitcoin, Ethereum and XRP extend losing streak as bearish momentum builds

Cryptocurrency prices are broadly correcting on Monday, led by Bitcoin’s five-day sell-off. Ethereum edges lower and trades around $2,325, as sellers build momentum to retain control over the trend. Meanwhile, Ripple shows signs of consolidating.

Pi Network Forecast: PI token remains under bearish pressure despite network access and security upgrade

Pi Network trades around $0.075 on Monday, holding steady after two consecutive days of roughly 2% losses, resulting in the lowest weekly close ever. Pi Network rolled out desktop version 0.6.4 on Thursday, focused on improving remote access and security for local AI apps.

Bitcoin extends pullback as ETF inflows clash with risk-off sentiment

Bitcoin remains under pressure, trading around $81,800 on Friday, recording modest losses so far this week. Despite a mild pullback, institutional demand showed signs of a comeback with spot Exchange Traded Funds recording $442.67 million in net inflows through Thursday.