The market participants showing strong interest in the discounted metaverse tokens have brought a significant recovery in Decentraland(MANA). Though the recent bullish reversal from $0.65 support doubled the altcoin price in just three days, the buyers still struggle to surpass the dynamic resistance trendline.
- The MANA price faces supply pressure at a descending trendline.
- A possible reversal would encourage the MANA sellers to pull the price back to $0.65
- The 24-hour trading volume in the Decentraland token is $1.57 Billion, indicating a 27% gain.
A symmetrical triangle pattern fallout on April 6th, outburst a strong selling momentum trapped within this 4-month consolidation. The price pattern bolstered MANA sellers to resume the prevailing downtrend and breach the immediate support level of $2.
Amid the recent sell-off in the crypto market, the downfall pierced through some additional support levels and marked $0.63 as the new 2022 low. Furthermore, the MANA sellers actively respond to a resistance trendline to maintain a steady downfall.
However, on May 13th, the MANA price bounced back from the $0.63 support and surged 106% to retest the descending trendline. Moreover, a high-wick rejection attached to the daily candle suggests that altcoin faces strong selling pressure.
A possible reversal would encourage the MANA sellers to pull the price back to $0.63.
However, a significant rise in bullish reversal could assist traders to breakout from the overhead resistance and drive the altcoin price to the $2.8 mark.
The Supertrend indicator highlights an overall downtrend and bolsters the reversal theory.
In addition, the daily-RSI slope shows significant divergence and follow-up rally contrary to the falling price, indicating the overextended selling has stabilized. However, if the divergence grows stronger, the altcoin may eventually breach the resistance trendline.
- Resistance level: $1.11 , and $1.66
- Support level: $0.62, and $0.4
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.