Decentraland price not out of the woods yet, MANA bears prepare for 28% decline
|- Decentraland price is gearing up for a significant drop following a slice below a critical line of defense.
- MANA could be headed for $1.46 next, a target given by the prevailing chart pattern.
- Decentraland may discover meaningful support at $1.92 before the sell-off continues.
Decentraland price could be headed for a further decline as MANA continues to drop toward the bearish target projected by a pessimistic chart pattern. The token is at risk of a 28% plunge toward $1.46 if the 200-day Simple Moving Average (SMA) fails to act as a reliable foothold.
Decentraland price searches for meaningful support
Decentraland price has formed a descending triangle pattern on the daily chart, putting a 44% nosedive toward $1.46 on the radar after MANA sliced below the lower boundary of the governing technical pattern on January 21.
The token could continue dropping further as Decentraland price fell below the 78.6% Fibonacci retracement level at $2.18 on January 22 which acted as a line of defense for MANA.
Decentraland price should be able to tread above the 200-day SMA at $1.92, which acts as the next line of defense for MANA.
However, dropping below the aforementioned level of support may spell further trouble for the bulls, as the token is likely to fall further to reach the bearish target at $1.46, coinciding with the October 29 high.
Additional selling pressure may see Decentraland price plunge further toward the 127.2% Fibonacci extension level at $1.09.
MANA/USDT daily chart
If buying pressure increases, Decentraland price will face immediate support-turned resistance at the 78.6% Fibonacci retracement level at $2.18, then at the lower boundary of the governing technical pattern at $2.64, which sits near the 61.8% Fibonacci retracement level and 21-day SMA.
Decentraland price may be confronted with a stiff hurdle at $3.09, where the 38.2% Fibonacci retracement level is located. Padding this resistance is the 50-day SMA and 100-day SMA. Only a decisive break above this headwind would see MANA target bigger aspirations above the upper boundary of the prevailing chart pattern.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.