- Decentraland price is seeing a minor pullback after a 10% upswing.
- The correction could extend, allowing MANA to retest $4 before rallying to a new all-time high at $7.5.
- A breakdown of the range low at $2.73 will invalidate the bullish thesis.
Decentraland price is currently undergoing a minor retracement. This downswing is likely to continue until it retests a crucial reversal zone. But the move will provide sidelined buyers with an opportunity to accumulate before starting a new upswing to potentially fresh all-time highs.
Decentraland price prepares for a blastoff
Decentraland price has been teetering around the 50% retracement level at $4.32 for quite some time. Even the COVID-induced crash did not push it below the level. Instead, MANA rallied roughly 10% to $5.23, but it is now experiencing a short-term pullback.
Investors can expect Decentraland price to head lower and pierce through the trading range’s midpoint at $4.32. This move will put it closer to a reversal zone, extending from $3.40 to $3.94.
A dip into this area will allow sidelined buyers to accumulate and get on the Metaverse bandwagon, propelling Decentraland price to rally. The first hurdle that MANA will face is $4.32, followed by the range high at $5.9.
Clearing these ceilings will open the path to new highs. The 100% Fibonacci extension level at $6.31 is close to the range high and is likely to be tagged quickly. However, it could go further – market participants could expect MANA to retest the 161.8% Fibonacci extension level at $7.53.
This run-up will indicate a 91% ascent from $3.93 and set a new high for the Metaverse token.
The downswing into the buy zone might sound alluring, but investors should note that it will only arrive if the midpoint of the trading range at $4.32 is breached. Failing to do so might trigger a premature uptrend for MANA.
MANA/USDT 4-hour chart
While things are looking up for Decentraland price, a breakdown through the base of this high probability reversal zone, ranging from $3.93 to $3.40, will be indicative of weak bullish momentum. A daily close below $3.40 is likely to trigger a retest of the range low at $2.74.
If Decentraland price produces a swing low beneath this barrier, it will invalidate the bullish thesis.
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.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?