MANA Technical Analysis: Price Within Falling Wedge Traps Bullish Momentum, Is It a Buy or Sell?
Decentraland defines itself as a computer game platform hopped-up by the Ethereum blockchain that enables users to create, experience, and legitimate content and applications.
Decentraland uses 2 tokens: MANA, an ERC-20 token that has got to be burned to amass non-fungible ERC-721 LAND tokens. These tokens may want to get hold of a spread of avatars, wearables, names, and a lot more on the Decentraland marketplace.
Let us move ahead to read about Decentraland technical analysis.
Past Performance of MANA
The MANA coin price action coils up within a falling wedge pattern in the daily chart. The price action shows a downfall of 40% from the inception of the pattern. Moreover, the dynamic resistance of the 50-day Exponential Moving Average keeps the bullish growth in check.
MANA Technical Analysis
The MANA coin price action is close to giving a breakout of the wedge pattern in the daily chart. Therefore, traders can shortly find a breakout entry opportunity.
Crucial EMAs (50, 100, and 200) move sideways in the daily chart with a bullish alignment. However, the price resonates within the 50 and 100-day EMAs resulting in a consolidation range. Therefore, the breakout of either EMAs will generate an entry signal.
The MANA price action suggests upcoming high supply areas at $3.45 and $4.15 above the falling wedge. And, in case of a bearish breakout, the price can find demand at $2.5 and $2.
The RSI indicator at 46% shows the slope struggling to rise above the central line in the daily chart. However, the slope sustains above the 14-day SMA, indicating a slight rise in the bullish power.
The MACD indicator shows a bullish crossover in the MACD and signal lines in the daily chart. The crossover marks the end of bearish histograms and indicates a rise in underlying bullishness.
Therefore, the technical indicators suggest a possible bullish breakout of the falling wedge pattern.
Upcoming Trend
The MANA coin price shows higher price rejection near the resistance trendline and the 50-day EMA. However, the technical indicators suggest a possible bullish breakout. Nonetheless, the breakout of either side will generate an entry spot.
Therefore, traders can hold their positions till the price action gives a bearish breakout.
At press time, the sentiments chart remains "NEUTRAL" for the MANA token.