Decentraland (MANA) Price Falls Below Key Support as Bears Overtake

Decentraland (MANA) Price Falls Below Key Support as Bears Overtake
  • In the 11 weeks after its ATH, MANA’s value has plummeted by more than 70 percent.
  • There was a chance that MANA may continue to rise after it hits the $2.5 level.

Decentraland (MANA) has oscillated between $3.3 and $2.2 for the last seven weeks. As bulls have attempted to seize control of the alt’s near-term trend, a bearish trend line resistance has formed. The $2.5-zone is now key to confirming a significant trend reversal as the buyers build up pressure. To test its bullish inclinations, it would have to go below its trend line resistance at about $2.4.

MANA/USDT: Source: TradingView

In the 11 weeks after its ATH, MANA’s value has plummeted by more than 70 percent. Yet, before it reversed its month-long trend line resistance, it witnessed a promising comeback, only to fall again.

Major Correction in Place

On its 4-chart, MANA has risen in a rising wedge for the previous ten days. After a week of wild swings, the price has settled into a more stable range. In other words, the distance between the Bollinger Bands (BB) top and the lower band seemed to be narrowing. The recent bullish engulfing candlestick generated a short-term demand zone in the $2.4-$2.5 area.

There was a chance that MANA may continue to rise after it hits the $2.5 level before the bears try a reversal. Even if the trend line resistance is intact, a breach below its reversal pattern is still possible if bears maintain their control. On the 4-hour chart of MANA, a close over $2.5 would have indicated a long-term trend reversal.

This tightening period of MANA’s trading is an opportunity for the coin to test the $2.4 level before facing a likely decline. According to CoinMarketCap, the Decentraland price today is $2.40 USD with a 24-hour trading volume of $364,675,765 USD. Decentraland is down 3.80% in the last 24 hours.

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