The MANA/USD pair has seen a significant rebound over the past week, suggesting a respite from the correction phase. Moreover, the technical chart accentuates the current recovery by revealing a cup and handle pattern. This pattern should help decentraland buyers to breach the weekly resistance of $2.9.
Key technical points:
- The Decentraland (MANA) buyers flipped the dynamic 20 DMA resistance to support.
- The intraday trading volume in the MANA is $4.9 Billion, indicating a 27% fall.
Source- Tradingview
During the correction phase in Decentraland (MANA) price, the alt price was resonating in a falling wedge pattern in the daily time frame chart. This pattern has helped bears to sell at rallies and tumbled the coin to 0.786 Fibonacci retracement level($1.7).
However, during the last week of January, the buyers made a 40% price recovery from the $2 support. The coin price pierced through the pattern’s resistance trendline and reached $2.88 by the month-end.
The MANA/USD buyers managed to sustain the coin price above 200 DMA, indicating the bullish trend remained intact. Moreover, the recent recovery has flipped the 20 DMA into a possible support level.
The daily-Relative Strength index(48) assists this rally with an impressive recovery from the oversold region.
MANA Price Displays A Cup And Handle Pattern
Source- Tradingview
The V-Shaped recovery in price action shows the formation of a cup and handle pattern. The Decentraland (MANA) price structuring the handle portion of this pattern should lead the price to the $2.9 neckline.
A bullish breakout and daily-candle closing above the combined resistance of 50 DMA and $2.9 would provide a 20% rally to the $3.5 mark and a better confirmation for a recovery rally.
However, if buyers couldn’t sustain the handle portion above the $2.45, the alt will sink to the $2 mark, which should confirm buyers’ interest at this support.
- Resistance levels- $2.9 and $3.5
- Support levels- $2.45 and $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/mana-price-analysis-3-reclaim/