altcoin

Here’s how MANA’s price could respond to the current market sentiment


After the sellers provoked a high volatility break below the $1.9-level in late April, Decentraland (MANA) saw a series of consistent troughs alongside lower peaks on its chart. The three-week trendline resistance offered a strong selling point for constricting the bull runs over the last month. 

A robust close below the $1.2-resistance would position MANA to head into a tight phase near its high liquidity range represented by its Point of Control (POC, red). At press time, MANA traded at $1.2161, down by 2.21%in the last 24 hours.

MANA 4-hour Chart

Source: TradingView, MANA/USDT

After slipping from its ATH, MANA found a traversing range between $1.7 to $3.3 for nearly three months. But with the selling pressure mounting up on the $1.7-floor, sellers were quick to inflict a steep drop toward the $0.6-$0.7 range. The immediate trendline resistance has supported the bearish narrative by keeping the bull rallies on a leash.

Consequently, the altcoin took a plunge to poke its seven-month low on 12 May. However, over the last five days, MANA ascended in an up-channel (yellow) on its four-hour chart. After breaking down from the $1.3-zone, the price may enter into a squeeze phase in the coming sessions. A plausible bullish crossover of the 20 EMA (red) and 50 EMA (cyan) would help the buyers gain some thrust to challenge the bonds of the trendline resistance.

A compelling close above the $1.2-level coupled with a 20/50 EMA bullish crossover would pave a path for a recovery above the $1.3-zone. But an inability to maintain the current levels would pull MANA toward its POC before any trend committal move.

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Rationale

Source: TradingView, MANA/USDT

The alt’s Relative Strength Index managed to sustain itself above the mid-line while testing the 63-mark resistance. A continued compression phase above the midline could help buyers regain a slight edge on the charts.

On the other hand, the CMF marked a bearish divergence with the price as it fell toward its zero-mark. A sustained close below this mark could delay the potential recovery prospects for MANA.

Conclusion

Should the price close above the 20/50 EMA alongside the $1.2-mark, buyers would claim a slight edge in the short-term trend. In which case, the $1.3-zone would be critical for them to topple to open doorways for a potential bull run. But looking at the weak buying volumes, MANA could see itself swaying near the POC before making a vigorous move on either side.

Finally, the alt shares a whopping 90% 30-day correlation with Bitcoin. So, keeping a watch on the king coin’s movement would be useful to make a profitable bet.



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