Decentraland price must hold key support to avoid correction to $2.70
- Decentraland price currently in a high volatility zone, holding support critical to future upside potential.
- Due to unexpected US CPI data, major intraday whipsaws in price action occurred.
- Substantial downside risks if bulls cannot keep MANA above crucial support zones.
Decnetraland price action has tested the bottom of the Ichimoku Cloud (Senkou Span A) at $3.15 for the past five trading days as support. $3.15 has thus far held, but the frequency of the tests has caused some concerns for bulls.
Decentraland price must hold above Senkou Span A to prevent a correction
Decentraland price, like the rest of the cryptocurrency market, suffered some strong selling after US CPI data temporarily tanked risk-on markets. MANA hit a new five-day low due to the sell-off, but it promptly recovered that entire loss to return to the Thursday open.
The longer bulls can keep Decentraland price above Senkou Span A; the Tenkan-Sen will eventually move closer to Senkou Span A and create a solid near-term support level. The combined support of Tenkan-Sen and Senkou Span A would help limit the downside risks associated with the volatility of being inside the Ichimoku Cloud.
The Ichimoku Cloud represents volatility, indecision, whipsaws, pain, anxiety, and misery. It is a place traders do not and should not participate. It is the place where trading accounts go to die. If Decentraland price can’t hold $3.15, the next support level is the Kijun-Sen at $3.70.
Ideally, Decentraland price will close above the Ichimoku Cloud, eliminating most of the volatility and creating a new bullish breakout setup. The earliest that this can occur is $3.88. However, by February 21, that threshold drops to $3.31.
Decentraland price must achieve a close above the Ichimoku Cloud before creating a new uptrend towards the $6 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
