- Decentraland price has formed a triple bottom setup at $2.78, hinting at an 18% rally.
- Investors can expect MANA to kick-start an uptrend since this pattern is formed in a $2.20 to $2.87 demand zone.
- A breakdown of the $2.20 support level will invalidate the bullish thesis.
Decentraland price has been retesting a crucial support area for roughly two weeks. Although it seems the altcoin lacks volatility, it is forming a bullish setup, suggesting that a reversal is around the corner.
Decentraland price prepares to U-turn
Decentraland price tagged the $2.78 support level thrice, starting from January 6, giving rise to a triple bottom setup. Interestingly, this setup formed after MANA dropped 33% and retested a demand zone, extending from $2.20 to $2.87.
Since the reversal pattern is formed inside the demand zone, the chances of a reversal are high. Therefore, investors can expect the Decentraland price to make a 12% run to the immediate weekly resistance barrier at $3.26.
Clearing this hurdle seems likely considering the buy-stop liquidity resting above the $3.39 hurdles, which coincides with the 50-day Simple Moving Average. Therefore, investors can expect MANA to surge an 18% in total.
MANA/USDT 4-hour chart
While things are looking up for Decentraland price, increased selling pressure that causes MANA to slice through the $2.78 support level will indicate a weakness among buyers. This development, albeit ephemeral, is not one that the bulls cannot recover from. However, if Decentraland price produces a four-hour candlestick close below $2.20, it will create a lower low, invalidating the bullish thesis.
In this situation, there is a good chance MANA will revisit the $1.49 support level, where buyers can choose to make a comeback.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.