Decentraland’s MANA price has the potential to go back to $4
- MANA price action is coiling into what appears to be a bullish wedge.
- Volume suggests more time is available for the wedge to develop.
- A break below 2.30 will invalidate the bullish outlook.
Decentraland’s native token MANA has been consolidating for 30 days since the 90% bull rally it saw in late January. While bulls appear to be re-entering the market, the token could soon rise towards $2.90 before a potential breakout.
MANA price is prepping for huge returns
MANA price is currently consolidating 2% below this week's high at $2.47 and has shown no weakness in the trend. Fruitful returns should come as no surprise to investors of the Metaverse token if it manages to break resistance. A sustained daily close above $2.50 could produce profitable returns in the days to come.
Volume, however, does not display clear evidence as to who is truly in control of MANA price. For this reason, it is best to assume that more time is needed for the overall wedge to develop.
The wedge still has 10% upside potential towards $2.75, which could be great for short-term scalpers.
MANA /USD 1-day chart
MANA's long-term investors should keep in mind that the big bull-rally back towards $4 is unlikely to happen soon. Bullish price action needs to occur around $2.92 first, which is an additional 20% from MANA's current price.
For this reason, long-term investors shouldn't add to their positions just yet. The better option is to keep buying power ready for a breakout above $2.92
Invalidation of this bullish wedge is currently 12% below MANA price at $2.30. A close below $2.30 on the 12-hour time frame will alter the structure too much to consider MANA's coiling price action as a bullish wedge.
Author
FXStreet Team
FXStreet
