Assessing MANA’s potential to hold itself above key levels

Over the previous ten days, Decentraland (MANA) hovered close to its excessive liquidity vary (Level of Management/POC) on the $2.6-mark earlier than the bears steered the pattern of their favor. 

An in depth under the $2.36-support might propel a continued retracement in its falling wedge (white). An eventual break from the present sample would set MANA up for a check of the instant provide zone within the $2.4-zone. At press time, MANA traded at $2.3835, down by 2.58% within the final 24 hours.

MANA 4-hour Chart

Supply: TradingView, MANA/USDT

After down sliding from its ATH and poking its multi-month low in late January, the $3.3-level shunned all bullish restoration makes an attempt. Regardless of this, the bulls have ensured increased troughs however didn’t uphold the 11-week-long trendline help (now resistance) (white, dashed).

During the last 5 days, MANA descended in a falling wedge (white) on its 4-chart. The value is now approaching a squeeze section after a steep two-day plunge. Additionally, the current bearish engulfing candlestick created a near-term provide zone for the alt within the $2.4-zone. 

Whereas the 50 EMA (cyan) undertakes a bearish crossover with the 200 EMA (inexperienced), MANA Might take a look at a long-term draw back. However earlier than that, any reversals from the $2.3-zone might end in a patterned breakout in direction of its 11-week trendline resistance.

Rationale

Supply: TradingView, MANA/USDT

The RSI projected a powerful bearish affect because it plummeted to the 24-mark on 7 April in its down-channel trajectory. A sustained shut above the present sample close to the 34-37 vary would result in a check of the 40-mark resistance.

Additional, the AO reaffirmed the RSI’s bearish inclination whereas holding some restoration hopes alive within the days to come back.

Conclusion

Because the EMA strains most popular the sellers, the instant demand zone would proceed to pose obstacles in its restoration section. An in depth above the present sample might result in a $2.4-mark retest earlier than a possible pullback.

Furthermore, the alt shares a whopping 90% 30-day correlation with Bitcoin. So, holding a watch on the king coin’s motion can be helpful to make a worthwhile wager.