• Decentraland price slices through the three-day resistance barrier at $2.57, signaling an uptrend.
  • A 15% rally to $3, coinciding with the 50-day SMA seems likely for MANA.
  • A breakdown of the $2.06 support level will invalidate the bullish thesis.

Decentraland price has seen a massive rebound over the last week, indicating a respite from the bearish regime. This recovery rally seems to have overcome a crucial hurdle and is likely to continue its uptrend.

Decentraland price eyes recovery

Decentraland price dropped 35% after it failed to stay above the recently breached declining trend line on January 16. The resulting downswing was a result of holders selling their reserves of MANA combined with panic selling due to the Bitcoin flash crash.

Regardless, Decentraland price seems to have formed a base around the $2.06 barrier and reversed the downtrend as it bounced roughly 27% over the past nine days. This uptrend is currently facing a 3-day resistance barrier at $2.59, which it seems to have overcome at the time of writing.

If MANA confirms a flip of this barrier into a support level, there is a good chance Decentraland price will continue its uptrend. For this, the altcoin needs to slice through $2.59 and bounce off the same barrier. In such a case, investors can expect Decentraland price to rally another 15% to retest the weekly resistance level at $2.91 or the 50-day Simple Moving Average around $3.

Another scenario explores the possibility of rejection at $2.59, resulting in a pullback to $2.20. A bounce from this barrier could trigger Decentraland price to climb 33% to retest the $3 psychological level.

MANA/USDT 1-day chart

MANA/USDT 1-day chart

While things are looking up for Decentraland price, a failure to break through the $2.59 resistancelevel will indicate that the uptrend is running on fumes and that a pullback is likely. The $2.20 support level is where MANA buyers can regroup for another leg-up.

However, a daily candlestick close below the $2.06 barrier will create a lower low, invaldiating the bullish thesis. In this case, Decentraland price could revisit the $1.49 foothold.

 


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


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP