On Wednesday, the Decentraland(MANA) price turned green, displaying a 3.66% intraday. The bullish candle retests the resistance trendline of the falling wedge pattern, attempting a bullish breakout. However, the buyers would face multiple resistance on its path, trying to limit the potential rally.
Key points:
- The declining 20-day EMA could soon nosedive below the 200-day EMA
- MANA price is poised to break out of the wedge formation.
- The 24-hour trading volume in the Decentraland token is $477 Million, indicating an 82.5% gain.
Source-Tradingview
The Decentraland(MANA) price showcased a slow and steady downfall within the falling wedge pattern. The correction phase started from the $3.5 level and has discounted the altcoin by 37%, hitting the $2.2 support.
This reversal pattern could kickstart a recovery rally once the price gives a genuine breakout from the overhead resistance. As price action narrows inside the wedge, we are likely to see a breakout soon.
However, the technical chart shows the buyers need to overcome a confluence of resistance levels such as the descending trendline, 20 and 200 EMA. If they succeed, the bullish rally will hit a 22% high resistance of $2.88, followed by the $3.5.
The coin holders are exposed to a bearish breakdown until the pattern is intact, indicating a 22% downside risk.
Technical indicator
The MANA price has recently nosedived below the 200-day EMA, indicating a bearish tendency. Moreover, a potential negative crossover among the 20-and-200 EMA could bolster a bearish fallout.
The Relative Strength Index slope travels a sluggish rally below the neutral zone, maintaining negative sentiment among traders.
- Resistance level: $2.5, and $2.88
- Support level: $2.22, and $1.7
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.
About Author
Source: https://coingape.com/markets/mana-price-prediction-mana-price-teases-wedge-pattern-breakout-can-0-28-within-reach/