Why $1.1 Breakout Could Soar Prices by 26%?

The Decentraland (MANA) price has been on a winning streak for the past four days, accounting for an 11.5% gain. The volume rise during this recovery indicates the traders are confident in rising prices. With sustained buying, the altcoin should escape the past two months’ range rally. 

Key points:

  • The MANA price faces intense supply pressure from the $1.1 resistance
  • The 20-and-50-day EMA bullish crossover attracts more buyers in the market.
  • The intraday trading volume in the Decentraland Token is $247.9 Million, indicating a 27% loss.

MANA/USDT ChartSource-Tradingview

The MANA/USDT technical chart represents an evident example of a rounding bottom pattern. The bullish reversal pattern has completed its early two stages with a Mid-May-to-June downfall, followed by ongoing consolidation in a range-bound rally.

As per the technical set-up, the MANA price should breach the overhead resistance of $1.1 and lead the coin to $1.36

On July 13th, the MANA price rebounded from the $0.75 bottom support and surged 44.61% within a month. Today, with a 0.88% jump, the coin buyers attempted to end this consolation with a bullish breakout.

However, the daily candlestick closing above the $1.1 neckline resistance within sufficient volume rise is required to confirm this breakout. The post-breakout rally may push the MANA price 26.2% higher to $1.36 resistance.

If the bullish momentum sustains, the altcoin may surpass the ceiling and climb towards the next significant support zone of $1.68.

On a contrary note, if MANA price reverts from the $1.1 resistance, and breakdown from the 20-day EMA will indicate the resumption of the consolidation phase.

Technical indicator

Bollinger band indicator: the recent price jump tags the indicator’s upper band indicates a minor is plausible before the breakout. However, the midline offering dynamic support should maintain the recovery phase.

RSI indicator: The daily-RSI slope shows a more substantial rally than price action, indicating the rising bullish momentum. This positive diverger suggests the price should eventually breach this $1.1 resistance.

  • Resistance level: $0.935, $0.75
  • Support level: $1.1, $1.36

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

Source: https://coingape.com/markets/mana-price-analysis-why-1-1-breakout-could-soar-prices-by-26/