Decentraland: MANA reaches a resistance zone, is it time to go quick?


Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation

Decentraland is likely one of the largest metaverse initiatives within the crypto ecosystem, however its token MANA has been on a gentle downtrend in latest weeks. After a quick foray beneath the $0.72 help, the worth has rallied by a powerful 80%. Nevertheless, this rally is perhaps close to its finish, and rejection at a resistance zone might happen over the following day or two for the crypto asset.

MANA- 1 Hour Chart

DecentralandL: MANA reaches a resistance zone, time to short?

Supply: MANA/USDT on TradingView

The $1.25-$1.35 space (purple field) is a better timeframe zone of provide for MANA, which had acted as a requirement zone earlier this month. Although MANA has seen an enormous rally prior to now couple of days, its longer-term market construction stays bearish.

The final time that MANA traded beneath the $1.3 mark was in October 2021. The truth that sellers have been profitable in pushing costs beneath this space exhibits there may be possible no straightforward path to restoration within the weeks to return, and additional draw back can’t be discounted within the weeks to return.

On the decrease timeframes, there may be robust proof that heavy shopping for quantity drove MANA to the $1.3 zone. Nevertheless, this doesn’t symbolize a shopping for alternative, however as an alternative, supplied a possibility to promote or quick the asset.

Rationale

DecentralandL: MANA reaches a resistance zone, time to short?

Supply: MANA/USDT on TradingView

The MACD was properly above the zero line, and the MACD line (blue) was above the sign line (orange) to indicate a robust purchase sign. Nevertheless, prior to now 24 hours, the MACD made a decrease excessive whilst the worth made a better excessive. This can be a bearish divergence, and its significance is enhanced because it occurred proper beneath a zone of provide.

The DMI confirmed a robust bullish development in progress after the almost 80% pump from the $0.7 lows a few days in the past. Equally, the OBV additionally spiked upward and has damaged the prior downtrend.

Conclusion

The symptoms confirmed robust bullish momentum and demand behind MANA, however a bearish divergence additionally recommended {that a} pullback might happen. Such a pullback might see MANA retest the $1 help degree. Based mostly on Bitcoin’s course, the token might both drop additional beneath $1 or, alternatively, discover extra demand and rally towards $1.3 as soon as once more.

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