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Decentraland price to double as MANA enters buy zone

  • Decentraland price correction nears an end as it approaches the buy zone, extending from $3.11 to $3.64.
  • A dip into this area will likely reverse the downtrend and trigger a 107% upswing to $7.50.
  • A breakdown of the range low at $2.46 will invalidate the bullish thesis.

Decentraland price has been on a downtrend for quite some time but is about to come to an end. This possible cessation of the correction is due to a buy zone that has a high chance of reversing the downswing.

Decentraland price ready for new all-time high

Decentraland price has dropped 26% between November 24 and November 26, and it looks like this downswing will continue a little lower. MANA will soon encounter the 50% retracement level at $4.01, a breakdown of which will knock it down toward the buy zone, extending from $3.11 to $3.64.

This area is well-known for producing high probability reversals. Therefore, investors can expect MANA to see a substantial increase in buying pressure around this area. A bounce from the buy zone will likely trigger an upswing that will undo the recent gains and aim to retest the all-time high at $5.90.

Decentraland price wil not stop at the current all-time high but make a run for the 100% Fibonacci extension level at $6.31. In a highly bullish case, this leg-up could take MANA toward the 161.8% Fibonacci extension level at $7.50.

This move would constitute a 107% upswing from $3.64 and set up a new high for the token.

MANA/USDT 4-hour chart

MANA/USDT 4-hour chart

On the flip side, if Decentraland price fails to bounce off the buy zone, extending from $3.11 to $3.64, it will indicate that the sellers are in control. This move will likely lead to a retest of the range low at $2.46.

Here, buyers can make another comeback, but a daily close below this level will create a lower low and invalidate the bullish thesis.

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.

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