The current correction phase has tumbled the Decentraland (MANA) price by 24.2% from the February 9th high($3.45). Moreover, the fallout from the double top pattern bolsters the sellers to dump the coin even lower. Will sellers continue their dominance or buyers will have a comeback opportunity?
Key technical points:
- The 200-day DMA maintains the bullish trend in MANA
- MANA price formed five consecutive red candles, indicating an 18% fall
- The 24-hour trading volume in the Decentraland is $615 Million, indicating an 12% rise.
Source-Tradingview
On February 15th, the MANA price bounced back from the $2.81 support by completing morning star cable. The bullish candle indicated a 17.5% intraday and reached the $3.4 mark. However, the sellers immediately rejected the price and plunged it to $2.8.
The coin chart showed a double top pattern in the daily time frame chart, with the neckline as $2.8. Amid the ongoing sell-off in the crypto market, the MANA sellers pulled the price below this, representing a 6.16% intraday candle.
The Relative Strength Index(44) has just slipped into the negative zone, indicating the growing strength of sellers.
Along with the $2.8 fallout, the price also breached the 50 DMA line, offering an additional edge to traders. However, with the coin price trading above the 200-DMA, the overall trend remains bullish.
The MANA Price Could Bring Retest opportunity
Source- Tradingview
If MANA bears sustain below the $2.9 mark, the selling pressure would intensify and plunge the altcoin to the immediate support of $2.43, followed by $1.69.
Contrary to the above assumption, if buyers bounce off from the $2.43 mark, the bulls will drive to the $3.4,followed by $3.62.
- Resistance level: $3.41, $1.699
- Support level: $2.43., $1.69
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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Source: https://coingape.com/markets/decentraland-price-analysis-double-top-hints-13-5-downside-risk/