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The MANA price action shows a falling channel pattern prolonging the downtrend, but the resistant buyers prepare a guerilla strike. The MANA price action displays the falling trend forming a bearish channel and keeping the bullish attempts in check. However, the recent bull cycle starting with a huge bullish divergence in the RSI forecasts a breakout rally. So, should you consider buying Decentraland for under 75 cents?
Key Points:
- The Decentraland prices prepare for a reversal in the falling channel.
- The bullish reversal comes with RSI divergence teasing a breakout rally.
- The intraday trading volume in Decentraland is $122.97 million.
Source - TradingView
MANA Technical Analysis
The MANA price displays a falling channel forming in the daily chart over the past few weeks. The bearish pattern prolongs the 20% drop to $0.85 by 10% to reach the $0.70 mark before showing a hint of a solid bullish reversal. The buyers at $0.70 successfully reversed the price trend during the correction phase in May. Furthermore, the growing bullish support is evident in the hike in intraday trading volume, which increases the possibility of a positive turnaround. If the MANA price trend gains bullish momentum, the bull cycle will break the falling channel giving an entry opportunity for breakout traders. The traders can expect the unleashed bullish momentum to propel the prices to $0.85, close to the 50-day EMA. However, a reversal in Decentraland prices from the resistance trendline will prolong the downtrend and neutralize the bullish breakout attempt.
Technical Indicators
The RSI slope grows in the nearly oversold zone despite the falling MANA prices reflecting bullish divergence. Moreover, the MACD and signal lines show bullish divergence in the last two dips and start a fresh trend of positive histograms. As a result, the Decentraland Technical Analysis indicates a breakout possibility. Resistance Levels- $0.77 and $0.85 Support Levels - $0.70 and $0.67