- Decentraland price is trying to break above the monthly pivot at $2.68.
- The risk of a dead cat bounce looms in MANA as global markets are on the back foot
- Expect a possible rejection on the monthly pivot with new lows into the US close towards $2.15.
Decentraland (MANA) is a bit of an outlier as it is up for the day, where most significant cryptocurrencies pairs are down. The risk at the current price action is that bulls could get caught in a bull trap or a dead-cat bounce after the dip from the past two days. Expect MANA price action to dip further towards $2.15 by the end of the trading session today.
MANA price action sets the stage for a bull trap
Decentraland is not enjoying the start of a new month, as price action has slipped over the past two days and sees bulls trying to claw back as we speak. The problem is that global market sentiment is on the back foot again today after the shocking disappointment from META earnings released after the market close yesterday evening. The rebound at the moment is trying – but looks to be failing – to break above $2.68, with bears rejecting the attempts of bulls, and not yet ready to close out their short positions.
With that move, bulls could find themselves trapped into an entry against the monthly pivot, with losses mounting as price action starts to fade away further from the pivot. Expect a retest of the low of today with a possible break lower. That could see MANA price action dip down even towards $2.15 if Nasdaq and other indices would dip further, resulting in a loss of 18% for Decentraland.
MANA/USD daily chart
As the META-shock is only a one-off event, expect investors to look beyond these results as earnings season continues quickly. This will result in a break above the monthly pivot, with price action popping above $2.68. Depending on the strength of the developing global tailwinds, the next target could see MANA hit $3.00, which falls in line with the 78.6% Fibonacci level. That would result in a 14% gain for Decentraland coins and see the Relative Strength Index (RSI) nearing the overbought area.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.