The Decentraland (MANA) technical chart indicates a reversal to retest the bullish breakout of the cup and handle pattern in the daily chart. However, this brings a shorting opportunity in a shorter time frame. Should you consider this as a trading opportunity to sell?
MANA Price Retests The Rounding Bottom Breakout
Source-Tradingview
On February 5th, the Decentraland (MANA) price gave a decisive breakout from the $3.1 neckline of the cup and handle pattern. However, the above retracement acts as a retest of this flipped support, providing a long entry opportunity
The sideways movement of the fast line in the MACD indicator showcases a bearish crossover possibility.
The price action suggests the crucial support levels for MANA price at $3.10, followed by a horizontal level at $2.85 in the 4-hour chart. Meanwhile, the resistance levels are $3.45 and $3.85.
Decentraland (MANA) Technical Analysis
- The daily-MACD Indicator lines enters the positive territory
- The 20 and 50 EMAs provides a bullish crossover in the daily time frame chart
- The intraday trading volume in the MANA coin is $734 Million, indicating a 27.8% loss.
Source- Tradingview
The MANA price shows a retracement of 10.5% in the rising expanding channel. The price action resonates in a falling channel pattern from the resistance trendline.
The altcoin price may find support near the high-demand confluence area near the $3.10. The support trendline, horizontal level of $3.10, and the 100-day EMA coincide to form the shared support.
Speaking of EMAs, the crucial exponential averages of 50, 100 and 200 maintain a bullish alignment in the 4-hour chart.
The RSI indicator shows a Zig-zag movement of the slope near the 50% mark. However, the bearish divergence present near the $3.10 projects a downfall possibility.
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-mana-short-term-reversal/