• Decentraland price remains inside the daily Ichimoku Cloud.
  • Indecision and volatility are expected to continue.
  • Profit-taking near all-time highs will weigh on any further upside potential.

Decentraland price maintains a value area above the most recent lows in the $3.00 price range. However, since entering the Cloud on December 17, its ability to maintain a bullish drive is now in question.

Decentraland price action to remain volatile, upside momentum limited

Decentraland price, while consistently rising over the past two weeks, is at risk of moving lower. The ranges of the past five daily candlesticks have continued to constrict and have created a short-term rising wedge pattern, a warning sign that upside momentum is likely to terminate very soon.

Two other factors warn of upcoming weakness for Decentraland price: the Relative Strength Index (RSI) and the Composite Index oscillators. The RSI has recently moved above the first oversold level in a bull market (50), but the slope has flattened and is beginning to curve south. Additionally, the Composite Index is facing against a prior uptrend angle and has started to point south.

MANA's upside potential is likely limited to the top of the Cloud (Senkou Span A) at $4.48 between December 27 and December 29. After that, that level drops to $4.01 between December 30 and January 4, 2022.

Downside risks are currently limited to the bottom of the Cloud (Senkou Span B) at $3.25. It is expected that this is where Decentraland price will return over the next two to three weeks.

Decentraland bulls and bears should be aware of the dangers of participating in any instrument inside the Cloud. The Cloud represents volatility, indecision, and frustration. Whipsaws and false breakouts are extremely common. In fact, within the Ichimoku Kinko Hyo system, it is advised that people ignore any instrument that is trading inside the Cloud.

MANA/USDT Daily Ichimoku Chart

A rotation of capital out of cryptocurrencies in the metaverse and gaming token space is expected. As a result, speculators will likely book profits from those cryptocurrencies and target cryptos with better upside potential than Decentraland price and other similar instruments.

 


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

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 ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum 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