Despite the ongoing market correction, Decentraland (MANA) has not fallen below its May 12 low and may be in the process of making a higher low.
MANA has been falling since hitting an all-time high of $5.90 on November 25, 2021. The downside so far has resulted in a low of $0.63 on May 12th. That was down 89% from its all-time high. time up.
The low was reached within the $0.72 horizontal range that previously acted as support from April-May 2021.
The weekly RSI is below 50 and falling, levels considered bearish.
Short term jump
The daily chart shows that the price rose sharply for two days after the May 12 low, but has been falling ever since. Despite this reversal, it has yet to break below its May 12 lows. So, the price could still make a higher low.
MANA has also been following a descending resistance line since the all-time high. Currently the line is at $0.80. A break above this would be required for the trend to be considered bullish.
The 6-hour chart shows that MANA has been trading in a descending parallel channel since May 14th.
This can be taken as a bullish sign as such channels usually contain corrections.
Therefore, if the price manages to bounce off the channel’s support line and reclaim the midline, a breakout would be expected.
This would also lead to a break above the long-term resistance line, thus ending the correction.
MANA/BTC
Cryptocurrency investor @hayess5178 tweeted a MANA chart and explained that price always bounces when BTC stops falling.
The MANA/BTC pair is showing a similar value as the short-term MANA/USD pair. However, instead of trading in a channel, the price has already broken out of a descending resistance line.
Also, since May 12th (green area), the movement looks impulsive. So, it is possible that the price initiated a bullish reversal on May 12 and has now completed its retracement.
for be[in]Crypto’s Latest Bitcoin (BTC) Analysis, click here
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