Decentraland: Assessing the Potential for MANA to Hold Above $1
Decentraland [MANA] the descent below the $2 mark tightened the alt in the bearish chains. The alt has been struggling to find a position above the EMA ribbons for over three months now.
During this phase, MANA experienced two descending channels while facing hurdles near the 23.6% and 38.2% Fibonacci resistances. The bulls needed to find a close above the ribbons to bolster the odds of breaking the 38.2% level.
At press time, MANA was trading at $0.9129, down 6.95% in the past 24 hours.
MANA Daily Chart
Source: TradingView MANA/USDT
The 38.2% Fibonacci resistance dampened the previous breakout of the descending (yellow) channel in the $1.03 region. As the selling pressure started to mount, MANA once again fell into a descending channel (white) to retest the $0.78 support.
With the point of control (POC, red) being in the $0.82 zone, the alt could not escape its low volatility over the past month. Moreover, the 20 EMA ultimately refused to look south. Any bullish crosses on the EMA ribbons would reaffirm the chances of a near-term recovery.
The price action may see a reversal from the $0.87 level in the coming sessions. A rally above the 20 EMA may help buyers retest the 38.2% level in the $1.03 area. Any bullish invalidation could cause further losses to the POC region.
Reasoning
Source: TradingView MANA/USDT
The Relative Strength Index (RSI) finally held above the midline after almost three weeks. While showing a somewhat neutral picture, the index needed to show some improvement to confirm a strong buyer advantage.
The CMF’s northern trends reflected the recent rise in currency volumes. This reading amplified the odds of the bulls providing immediate support. Additionally, the DMI lines resonated with these indicators to present a slight bullish edge. But the ADX continued to show a weak directional trend.
Conclusion
While the indicators have taken a slightly bullish bias, the MANA could see short-term gains. In this case, the potential targets would remain the same as those discussed.
Finally, alt shares a 69% 30-day correlation with Bitcoin. Thus, monitoring the movement of the king piece could be helpful in making a profitable bet.