Decentraland continues to consolidate, MANA must hit $3 to prevent further downside pressure

• Decentraland price is relatively unchanged from Monday’s analysis.
• MANA consolidation inside the Ichimoku Cloud persists but can quickly turn bearish.
• Bearish warning signs begin to develop unless bulls can rally Decentraland.

Decentraland price continues to maintain the majority of the gains made on Monday. Bulls continue to hope that enough momentum exists to convert MANA into a significant bullish breakout above the Ichimoku Cloud. However, the Cloud itself is constricting, and the Chikou Span is now below the candlesticks, reducing the threshold that bears need to trigger another sell-off.

Decentraland price moving into a make-or-break point; bears increasingly likely to take control

Decentraland price remains inside the Ichimoku Cloud with no clear directional bias in place. As a result, MANA is stuck in between strong support and resistance. The primary near-term resistance is the top of the Ichimoku Cloud (Senkou Span B) and the Kijun-Sen at  $2.75 - $2.80, respectively.

The primary near-term support level for Decentraland price is $2.55, which contains the bottom of the Ichimoku Cloud (Senkou Span A), Tenkan-Sen, and 38.2% Fibonacci retracement of the all-time high to the low of the weekly strong bar at $0.68.

Bulls need to close Decentraland price at or above $3.00, at a minimum, to put MANA above the Ichimoku Cloud and return the Chikou Span above the bodies of the candlesticks. Unfortunately, bulls need to continue to print higher closes every day to maintain the Chikou Span above the candlestick bodies.

MANA/USDT Daily Ichimoku Kinko Hyo Chart

Their threshold to initiate an Ideal Bearish Ichimoku breakout has been reduced for bears. On Tuesday and Wednesday, the target to trigger an Ideal Bearish Ichimoku breakout on Decentraland price was $2.44. That has risen to $2.55 for today, and by Friday and Saturday, the threshold decreases again to $2.75.

If bears keep Decentraland at its current price, then the open of the Friday or Saturday candlestick will trigger the sell signal, creating conditions that could see MANA retest the 2022 lows near $2.

 

---