Decentraland price under pressure by market turmoil, MANA points to steep correction
|- Decentraland is on the back foot today after hitting $6.0 on Thursday.
- MANA price tumbled as news about a new covid variant rattled global markets.
- A break below $4.5 would see the price correct further towards $3.66, a 16% devaluation.
Decentraland (MANA) has not been able to sit back and enjoy its all-time highs printed on Thursday, above $6.0. MANA price reversed to the downside as a wave of negative news surrounding a new Covid variant hit news wires during the Asian session, and pushed investors into risk-off mode. Expect to see reversals across the board in all cryptocurrencies, with MANA price seeing first support at $4.5, but possibly pushing lower as the day continues, towards $3.66.
Decentraland price can fall 16% after hitting new all-time highs
Decentraland is on the backfoot in the slippage of its larger brother Ethereum and other major cryptocurrencies. Markets got rattled by breaking news during Asian hours about a new strain of Covid that could be worse than the ones already known to man for the moment. Global markets quickly tumbled across the board with investors pulling out their investments and causing a massive sell-off in several assets, except safe-havens.
MANA price broke below the monthly R1 resistance level at $5.05 and traded towards the first support at $4.50. That level is just below the 38.7% Fibonacci retracement level at $4.60, both have yet to prove their support. As the US market still needs to open after its Thanksgiving holiday, expect a second wave of selling to come this afternoon and push MANA price further to the downside to break the 50% Fibonacci level at $4.12.
MANA/USD daily chart
Expect that second wave to see some acceleration to the downside and face the double support at both the green ascending trend line and the 61.8% Fibonacci retracement level that intersects it at $3.66. This would be a very good entry-level to gear up for a long position, since at this point the move may have become exhausted. At the beginning of next week, dust will have settled and MANA price will have clawed back towards that historical level at $4.50 and flirting with the $4.60 level that coincides with the 38.2% Fibonacci level. A further fade of the headwind and investors looking for buying-opportunities could push MANA price even back towards $5.0 by the end of next week.
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