Decentraland nearing support to withstand current global markets turmoil
|- Decentraland price action is nearing two levels of vital support.
- Although most cryptocurrencies are heavily on the backfoot, Decentraland and Bitcoin limit any significant losses.
- Expect a bounce of 38% towards $3.66, making new highs for this year.
Decentraland (MANA) price action is losing ground as global markets look to be set on fire by concerns about the escalating situation between Russia and Ukraine. But MANA could be able to withstand these headwinds with the help of support just a few percentage points away. This could set up Decentraland price action for a rally that could set new highs for 2022 at $3.66.
MANA bulls are ready to pull the trigger for the rally around $2.67
Decentraland price action looks set to have another red day, making it the sixth one in a row. But although markets seem to be on fire – and yet again, the end of the world looks near, with a possible war between Russia and Ukraine – investors can still come out winning from this crisisn interesting support level is within reach at $2.67 which could provide the foundation for a recovery.
That level is the monthly pivot and it could halt this downtrend in the same way it did at the beginning of January. Once markets realise that talks are still ongoing and for the moment no real war has started, expect investors to look beyond the current sentiment and start to see the buying opportunities, as headwinds quickly start to fade. Expect a bounce off of either $2.67 or $2.57, followed by a rally that could hit $3.66, printing new highs for 2022 and in the process booking a 36% profit.
MANA/USD daily chart
Should markets fall further, and equity indexes start to trade into corrective areas, expect more downturns to come as the moves blindside investors, and buying the dip will not work as a strategy this time. Expect MANA bears to punch through $2.57 and set sail for $2.15 where the 200-day Simple Moving Average (SMA) and the start of the Fibonacci retracement level fall in line with each other. A break below, would spell a free-fall of price action as MANA re enters its corrective area and there is a general loss of investor confidence.
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