After the recent deep corrections, investors in the crypto market have started to show a very strong interest in metaverse tokens. Decentraland (MANA) He used this interest well and recovered. Even though the recent bullish reversal from the $0.65 support has doubled the altcoin price in just three days, buyers are still struggling to break through the dynamic resistance trendline.
MANA price seems to be facing supply pressure on a descending trendline. A possible reversal would encourage MANA sellers to pull the price back to $0.65. Decentraland’s 24-hour trading volume stands at $1.57 Billion, showing a 27% gain.
A symmetrical triangle pattern drop on April 6 revealed and exploded a strong selling momentum trapped in this 4-month consolidation. The price pattern encouraged MANA sellers to continue the current downtrend and break the $2 immediate support level.
After the recent sell-off in the crypto market, the decline has pierced some additional support levels and marked $0.62 as the new 2022 low. Also, MANA sellers are actively responding to a resistance trendline to maintain this steady decline.
Despite all these developments, MANA price bounced back from the $0.62 support on May 13 and surged 116% to retest the descending trendline. Also, the higher wick rejection attached to the daily candle indicates that the altcoin is facing strong selling pressure.
A possible reversal would encourage MANA sellers to pull the price back to $0.65. However, a significant spike in the bullish reversal could help traders break through the overhead resistance and push the altcoin price to $2.8.
Technical Indicators
The Supertrend indicator highlights an overall downtrend and supports the reversal theory. Additionally, the daily RSI slope shows a significant divergence and trailing rally in contrast to the falling price, indicating that the overextended sell is stabilizing. However, if the divergence becomes stronger, the altcoin could eventually break the resistance trendline.
Resistance level: $1.11 and $1.66.
Support level: $0.62 and $0.4.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.