Decentraland (MANA) price enters into profit booking zone after recent rallies from the lows of Jan 20 with an upside rally of nearly 45%. Bears could test 50-DMA $2.90 in the upcoming few sessions. Further, it would be interesting to watch if MANA could be near this level.
- Decentraland (MANA) falls for the second straight day.
- An Evening star formation indicates downside pressure in the metaverse coin.
- Overbought RSI warns of aggressive bids.
As of writing, MANA/USD is trading at $3.18 with a 24-hour trading volume of $1,050,386,551 down 30%.
Evening star on daily chart favors Bears
On the daily chart, MANA devalued nearly 70% from the all-time high made in November at the high of $5.91. Further, the price has breached the 50-DMA on February 5 once it breaks below the significant level on December 13.
The formation of the ‘Hammer’ candlestick pattern, which is a bullish formation made at the lows made in January pushed the price up 35%.
Now, the current price rally seems to be exhausted as investors encounter ‘double top’ and ‘Evening star’ formation near $3.45. Both technical setups supports the bearish outlook for the coin in the short term. The first immediate target could be found at the 50-DMA.
Next, a decisive close below the mentioned moving average would explore the demand zone placed around the $2.50 horizontal support line. The Daily Relative Strength Index (RSI) has been trading in the overbought zone with a downside tilt.
On the other hand, Investors would look after the highs of December 27 at $3.97 if the price is able to cross above the session’s high.
Disclaimer
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.
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