A Flag pattern is leading this correction rally in Decentraland (MANA) token price. The token is still trapped inside this pattern, and so far it has almost lost 50% of its value. The long traders should wait for a bullish breakout from the overhead trendline to acquire a proper long entry signal.
Key technical points:
- 100-day EMA provides strong support to MANA token
- The ADX slope has shown a significant drop in its value
- The 24-hour trading volume in the Decentraland token is $344.9 Million, indicating a 13.9% loss
Source-Tradingview
Previously when we covered an article on Decentraland token price analysis, the MANA/USD price was trying to recover from the January 5th bloodbath in the crypto market. However, the buyers couldn’t sustain the price at a higher level and dropped it back to the 0.168 Fibonacci retracement level(2.61).
Anyhow, the technical chart shows the formation of flag pattern in the daily time frame. This pattern represents a short resting period for the token price before it could continue its upside rally.
The MANA token price trading above the 100 and 200 EMA states a bullish trend. However, on the flip side, the 50 and 20 EMA lines could act as a valid resistance level.
The daily-Stochastic RSI shows recovery signs from the oversold region. The indicators displays several bullish crossovers between the K and D lines as it is charging towards the higher levels.
MANA Token 4-hour Time Frame Chart
Source- Tradingview
The MANA token price is currently trading at $2.95, with an intraday loss of 1.03%. The crypto traders should be patient till the price give a proper breakout from the overhead resistance, providing an excellent entry opportunity for them.
The average directional movement index(13) displays a downward slope, indicating the losing selling momentum.
The traditional pivot level indicates the overhead resistance for MANA price is $3 and 3.36. As for the opposite side, the support levels are $2.6, followed by $2.2.
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-escaping-the-flag-pattern-mana-token-could-rally-to-the-5-5-mark/