- Decentraland price has rallied 56% after slicing through a two-month resistance barrier on January 29.
- MANA looks ready for a 20% leg-up after a minor retracement on February 9 and 10.
- A breakdown of the $2.57 support level will invalidate the bullish thesis.
Decentraland price has broken free from its extended downtrend and is currently on a recovery rally. The recent U-turn in January shows that the momentum is strong and is likely to extend the run-up.
Decentraland price to continue its uptrend
Decentraland price has been on a massive 108% uptrend after bottoming at $1.71 on January 22. This run-up has three crucial hurdles and collected liquidity resting above $3.39 and is currently looking to restart a new leg-up.
While the new rally seems to be on its way, investors should note that a retest of the $2.92 support level is a plausible scenario. Assuming the Decentraland price continues to ascend from its current position, it can climb roughly 20% before encountering the weekly resistance barrier at $3.87.
MANA/USDT 1-day chart
Supporting this run-up for Decentraland price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index suggests that the immediate resistance barrier, extending from $3.54 to $3.75, is weak.
Therefore, investors can expect MANA to pierce the subsequent blockade that ranges from $3.75 to $5.41, where roughly 29,520 addresses that purchased 185.48 million MANA tokens are “Out of the Money.” Interestingly, the local top forecasted from a technical perspective coincides with the resistance cluster viewed from an on-chain perspective.
MANA GIOM
Adding a tailwind to this bullish outlook for Decentraland price is the decline in the supply of MANA tokens on centralized exchanges from 815 million to 789 million in less than two months.
This 3.2% slump suggests that investors are unlikely to sell their holdings since they are confident in the performance of MANA price in the near future.
MANA supply on exchanges
While things are looking good for Decentraland price, a breakdown of the $2.92 support level will suggest that the buyers are unable or unwilling to participate. However, a daily candlestick close below $2.57 will create a lower low and invalidate the bullish thesis.
In this situation, Decentraland price could crash lower, retesting the $1.50 barrier.
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