Decentraland: An extended decline for MANA depends on these conditions
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After Decentraland [MANA] lost its previous baseline at the $2-mark, sellers led the trend on their end by keeping the price below the basis line (green) of the Bollinger Bands (BB) for the most part.
The consistent lower peaks alongside the declining troughs materialized in a down-channel (yellow) was witnessed in the daily timeframe. Bears would now aim to retest the upper trendline of the channel.
Any bounce-back from the $0.7-zone would position MANA for a short-term upside. At press time, MANA traded at $0.8129, down by 7.97% in the last 24 hours.
Source: TradingView, MANA/USDT
The bulls found decent revival opportunities after recovering from the seven-month low on 12 May. But sellers reiterated their vigor after reversing the mid-May bullish run from the 38.2% Fibonacci level.
Thus, as the selling pressure started to mount, MANA fell into a down channel to retest the $0.78-support. While the bulls rebutted, MANA registered a streak of higher peaks enabling a patterned breakout. The 23.6% level and the Point of Control (POC, red) shunned the intensity of this breakout.
Interestingly, the volumes over the last few days have dropped while the price action plunged. Hence, revealing a fairly weak bearish move.
The price action could see a reversal from the $0.78-level in the coming sessions. A recovery above the basis line of BB can help the buyers retest the POC in the $1-zone. Any bullish invalidations could provoke further losses until the $0.704-mark.
Source: TradingView, MANA/USDT
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