Mana’s price commenced a bullish rally after forming support at $0.51 but the move could not stabilize and the price faced strong resistance from $0.70. The drop activated a robust bearish sentiment in the market, leading to the price breaking the support level of $0.51.
The cryptocurrency’s price then entered into a narrow consolidation zone ranging between $0.45 and $0.51. During the start of June, the consolidation zone was broken and the price fell further down. Recently, Decentraland’s price formed support at $0.33 to start its recovery phase. The price is staying above $0.40 but the previous candle faced resistance from the $0.42 level.
The current candle is bullish and headed toward $0.42. If bulls take control and push the price above $0.42, there is a high probability that it might head toward $0.51. The price might face a hurdle near $0.45 which is support turned resistance, but if bullish momentum prevails, the price can easily rise above it.
On the other hand, if the price breaks the lower wick of the previous candle, it might head down toward $0.35. The market capitalization of Decentraland is up by 1.60% to $773 million. The 24-hour volume has increased by 56.65%.
Will MANA Price Break Above $0.42 level?
The cryptocurrency’s price has positively crossed the 20-day EMA, which indicates rising bullish momentum in the price. The concern is that the previous candle has rejected the 50-day EMA. Chaikin money flow score is 0.14, suggesting that there is strength in the market. The relative strength index (RSI) is 54.22, denoting that the price is in neutral territory facing equal pressure from bulls and bears.
If price falls below $0.40, there is a possibility that the price might consolidate between a range of $0.42 and $0.36. Risk-averse traders should wait for the price to break and close above $0.42 before looking for any buying bids. The price has reached the upper band of Bollinger which indicates a possibility of pullback toward the 20-day SMA of Bollinger bands.
The long/short ratio is 0.93 with 48.2% longs and 51.8% shorts, indicating a slightly higher pressure from bears in the last 24 hours.
Conclusion
The market structure and price action of Decentraland have turned bullish after the price started to bounce up. Currently, there is no clear direction in the price after it faced resistance from the $0.42 level. The technical parameters suggest that there is a possibility of consolidation as the price might enter into a short-term pullback.
Technical Levels
Major support: $0.33 and $0.36
Major resistance: $0.51 and $0.57
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/03/decentraland-price-prediction-mana-price-rejects-50-day-ema/