The breakout of the falling wedge pattern showcases an incredible post-retest bullish rally in Decentraland (MANA) price. The price action creates multiple bullish candles accounting for a 30% rise in the past 4 days. However, the rally struggles to sustain above the 100-day SMA and teases the possibility of a reversal. Will the rally continue or a short-term retracement is inevitable?
Key technical points
- MANA Price breaks above all the crucial EMAs in the daily chart.
- The sudden surge in the RSI slope reflects a boom in buying pressure.
- The 24-hour trading volume in the Decentraland token is $1.259 Billion, indicating a 0.32% rise.
Source-Tradingview
Previously when we covered an article on Decentraland (MANA) price analysis, the MANA/USD price was attempting to sustain above the 50-day SMA and the $3 mark. Since then, the coin price has grown above the 100-day SMA with a 10% price jump in the past 24 hours.
The retest of the trendline breakout influences highly bullish sentiments that has helped in the entry of new buyers and bullish candles in the daily chart. However, the higher price rejection evident by the wick formations threatens a short-term retracement.
The MANA token price breaks above the 100-day SMA as 50 and 200-day SMAs rise higher. Hence, a bullish crossover of the 50 and 100-day SMAs can be seen shortly.
The RSI indicator shows phenomenal bullish recovery as the slope spikes into the nearly overbought zone. Furthermore, the 14-day SMA shows a gradual bullish rise reflecting a buyers-driven market.
MANA Price Outshines Resistance Trendline
Source- Tradingview
The MANA price is currently trading at $3.36 as it struggles to sustain above the 100-day SMA. Therefore, crypto traders should be patient and keep holding onto their positions before booking their profits.
The stochastic RSI indicator shows a potential bearish crossover in the overbought zone as the K and D line approach each other. However, the supertrend indicator showcases a new bullish start as it reflects a trend reversal.
The price action showcases crucial resistance levels present at $4 and $4.35. On the opposite end, the support levels are present at $3 and $2.70.
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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