• Decentraland price eyes a retest of $2.92 after rejection at the $3.39 resistance barrier.
  • This downswing will allow MANA to trigger an ascent to the weekly resistance level at $3.86.
  • A breakdown of the February 14 swing low at $2.72 will invalidate the bullish thesis.

Decentraland price has been on a downswing for the past two days and is currently attempting to make a U-turn. There is a good chance MANA will slide lower before triggering a quick run-up.

Decentraland price looks to set up higher highs

Decentraland price dropped 10% as it set a lower high after rejection from the $3.39 resistance barrier. However, MANA has shown bullishness by creating multiple higher lows since January 22. 

The recent rejection or the inability of buyers is a temporary setback. So, investors can expect Decentraland price to slide lower and retest the weekly support level at $2.92. This move will allow bulls to recuperate and provide MANA a base for its next leg-up.

The resulting upswing will likely propel Decentraland price to slice through the $3.39 hurdle and make its way to the weekly resistance level at $3.86, coinciding with the daily supply zone, extending from $3.92 to $4.31.

In total, MANA could be preparing for a 35% ascent to $4.00

MANA/USDT 4-hour chart

MANA/USDT 4-hour chart

Interestingly, the Decentraland price IntoTheBlock’s Global In/Out of the Money (GIOM) model aligns perfectly with the technical outlook. This on-chain index shows that the next hurdle for MANA extends from $3.37 to $3.74. Here, roughly 15,210 addresses that purchased 244.75 million tokens at an average price of $3.57 are “Out of the Money.”

Therefore, any spike in bullish momentum is likely to be met with resistance from the selling pressure of investors trying to break even. 

MANA GIOM

MANA GIOM 

Moreover, the number of large transactions worth $100,000 or more has increased from 94 to 272 in the last month. This 189% spike in transfers suggests that high networth investors are interested in Decentraland at the current price levels and serves as a proxy of their investment interests.

MANA large transactions

MANA large transactions

While things are looking up for Decentraland price, a breakdown of the February 14 swing low at $2.72 will create a lower low and potentially tilt the odds in bears’ favor and invalidate the bullish thesis.

If this scenario plays out, MANA could revisit the 3-day support level at $2.57 before attempting another leg-up.

 


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

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

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