- Decentraland price at an inflection point.
- MANA completed a 50% logarithmic retracement, fulfilling conditions for a new floor to target new highs.
- $2.50 is the critical resistance zone to break above to initiate a new bull run.
Decentraland price has rallied strongly since it hit three-month lows at $1.70. Since then, MANA has spiked nearly 39% off the lows to hit $2.25.
Decentraland faced strong Ichimoku and Fibonacci resistance at $2.50
Decentraland bulls have been thirsty to repeat the rally it experienced in October 2021. There is no reason why MANA can’t repeat that success, especially given the growth in interest and investment into the metaverse and gaming-token space. However, significant hurdles exist and will be tested before Decentraland can return to its highs.
The first hurdle that Decentraland price must defeat is a confluence zone of resistance between the Tenkan-Sen at $2.50 and the shared $2.58 price level with the 38.2% Fibonacci retracement and Kijun-Sen. The likelihood of MANA pushing through the $2.58 zone decreases significantly if the Composite Index oscillator creates a high above the January 16 high (in the oscillator) – hidden bearish divergence. But if MANA can create a close above the January 16 close, then the hidden bearish divergence will be avoided.
MANA/USDT Daily Ichimoku Kinko Hyo Chart
Downside risks remain strong but should be limited to the 50% Fibonacci retracement at $2.00. Any further bullish outlook is invalidated if a daily or weekly close is below $2.00. MANA would likely push towards the 61.8% Fibonacci retracement in that scenario at $1.55.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.