Declining Volumes Warns Of Correction; Are You Holding?

MANA token

Published 11 hours ago

The Decentraland price analysis indicates a sideways trend with a bearish sentiment. The upside rally lost its steam near the $1.10-$1.20 resistance zone. It is a six-month-old resistance zone, which remains a hard nut to crack for the bulls. Multiple candles near the mentioned level show the rejection.

The MANA token is trading in a very narrow trading range extending the previous session’s sell-off. The price meets the selling pressure near the supply zone. Currently, the token is hovering near the critical support zone on the daily chart.

As of writing, MANA/USD is trading at $0.97, up 0.99% for the day. The 24-hour trading volume fell more than 15%  to $1,47,210,146.

  • Decentraland price trade with modest gains on Thursday.
  • Horizontal support near $0.98 acted as a crucial barricade for a deep fall.
  • A break below $0.98 would intensify the selling pressure on the token.

Decentraland price looks submissive

Source: Trading view

The Decentraland price analysis reflects the sellers are taking control

On the daily chart,  MANA is trading in a “Rising Wedge” pattern. A rising wedge is generally a bearish signal as it indicates a possible reversal during an uptrend. 

The volumes are declining, with the rising price of a MANA, which implies a decreasing interest in creating long positions. When the market is rising while volume is declining,  it might mean that the big players are not buying, more likely slowly exiting positions.

The price is recently supporting the 20-day exponential moving average, along with a support line connecting all previous lows. If that occurs the price could further drop toward  $0.940.  It will add to the bearish sentiment. 

Next, the MANA sellers could look for a fresh selling opportunity at the low of July 26 at $0.84.

The nearest support of MANA is between $0.93 to $0.96, whereas the most immediate resistance is found around $1.04. There is a higher probability of a price-breaking support zone.

On the flip side, a daily candlestick above $1.01 would deter any bearish sentiment.

4-hour chart echos bearish frequency

Source: Trading view

 In the four-hour time frame, the price made higher highs and higher lows, but recently, the trend has changed from bullish to bearish.

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Near the higher levels, MANA  made a “Double Top” pattern and even broke the previous swing low. This provides a “Sell on rising” opportunity for investors.

On the other hand, a break above the $1.02  level could invalidate the bearish outlook. And the price can be above $1.110

MANA is bearish on all time frames. Below $0.94 closing on the hourly time frame, we can put a trade on the sell side. 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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-declining-volumes-warns-of-correction-are-you-holding/