• Decentraland price weakness continues despite the post-flash-crash rally.
  • Oscillators point to further downside moves.
  • Metaverse and gaming token space remains extremely overbought and parabolic.

Decentraland price faces intense selling pressure as the cryptocurrency market reels from uncertainty. Sellers attempt to push Decentraland’s close to a twenty-day low. The weekly chart indicates lower prices are almost unavoidable.

Decentraland price correction to continue, bear attack not complete

Decentraland price action has been the definition of what a whipsaw looks like. The Saturday flash crash saw Decentraland make a 65% gain from the lows and then push a daily close above the open – a feat almost no other cryptocurrency could accomplish. However, that bullish response was unable to convert into sustained momentum.

There remains a natural correction that has yet to occur for Decentraland. Decentraland price did move to that correction zone, but no meaningful close in that value area occurred. That value area is between the 50% Fibonacci retracement at $2.00 and the 38.2% Fibonacci retracement at $2.48. Until there is a daily or weekly close near at least the $2.50 level, Decentraland remains highly overbought.

The weekly Relative Strength Index shows how excessive Decentraland’s rise remains. The Relative Strength Index recently came out of extreme overbought levels, moving only just below the 80 levels last week. It has not moved to test the oversold levels at 50 or 40 since the beginning of the most recent spike during the week of October 29th.

Ideally, Decentraland price would have a weekly close near the $2.00 level. That would certainly position the Composite Index at or below the September 24th low, creating a tremendous hidden bullish divergence. Additionally, the Relative Strength Index would be right on top of the 50 level.

MANA/USDT Weekly Ichimoku Chart

One of two moves must occur to invalidate the near-term bearish bias and outlook. The least likely to occur would be Decentraland price moving to new all-time highs. Instead, the most likely scenario is a return to equilibrium over time, where Decentraland price would trade sideways with the Tenkan-Sen and Kijun-Sen, flattening out with weeks of trading between the $3.25 $3.50 value areas.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

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