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
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
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.
