Identifying whether a 30% relief rally is more than a pipe dream for MANA

ambcrypto.com:

Decentraland’s price has shown considerable resilience relative to other altcoins. Another impressive development from MANA is that it has managed to stay afloat, despite the Russia-induced flash crash across financial markets. Furthermore, MANA’s price seems to be picturing the formation of a bottom reversal pattern, one that forecasts gains for the metaverse token.

MANA’s price witnessed an exponential run-up in late October after the announcement from Meta, formerly Facebook. This upswing propelled it by 693% to set a swing high of $5.91 on 24 November. 

Since this point, MANA has retraced multiple times, producing lower highs and equal lows. As a result, Decentraland has bounced off its crucial support level at $2.20 thrice, forming a triple bottom setup. This technical formation is a bottom reversal pattern that forecasts a trend reversal, stipulating gains for the metaverse token. 

Investors can expect MANA to rally by 28% before encountering a resistance barrier at $2.83. While there is a good chance the alt can set a local top here, a pile-up of bid orders could send MANA exploding to $3.5, constituting a 58% ascent.

There is a good chance market makers might sweep the $3.5 barrier to collect buy-stop liquidity resting above it.

Source: MANA/USDT on TradingView

Supporting this claim from a technical perspective is the recent downtrend in the supply of MANA tokens on exchanges. This number has reduced from 809.05 million to 805.03 million tokens over the last three days.

In total, 4 million MANA tokens have left centralized entities over the last three days, suggesting that its investors are highly bullish on the performance of the token.

Source: Santiment

Adding credence to the bullish thesis is the 30-day Market Value