Decentraland (MANA) Price Correction Trend Deviation Potential

The price of Decentraland (MANA) is currently in a correction trend from which it may deviate.

Since the year’s beginning, the price of Decentraland has multiplied, reaching a peak of $0.82 on January 27. The movement broke an extended downward resistance line that had been in place since May 2022.

At $1.10, the following resistance level would be reached if the rise persists. Since August, the last time anyone visited the region (red icon).

Nevertheless, despite the high share price, the daily RSI raises questions about whether the upward movement will continue. The green line indicates a bearish divergence, and an indicator falling below 70 signals a bearish trend.

Future drop likely to affirm $0.55 support levels, formed by 0.5 Fib retracement and previous breakout resistance line. Furthermore, The short-term 6-hour chart technical analysis suggests a Decentraland price forecast for February, concurring with the daily time frame analysis. This is due to two factors:

Initially, the MANA price has been confined within a rising parallel channel since January 16. Such media tend to display corrective movements, so a departure from them is the probable outcome.

Additionally, like the daily time frame, the six-hour Relative Strength Index (RSI) has produced a bearish divergence (as indicated by the green line). Thus, the most probable outcome is a channel breakdown.

Decentraland price expected to reach $0.55 support (0.5 Fib retracement, previous resistance line, horizontal support). This convergence of support levels makes a rebound once it goes to the most probable outcome.

Related Reading | FTX Founder Rejects Government’s Misleading Accusations

In conclusion, the Feb. Decentraland price will likely break from the short-term ascending channel and fall to $0.55, followed by upward movement. A channel breakout would negate this bearish forecast, leading to an increase toward $1.10.

Comments (No)

Leave a Reply