MANA investors should be careful with this range because…

Warning: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.

Over the past seven weeks, Decentraland (MANA) has found an oscillation range between $3.3 and $2.2. Over the past month, the alt has imagined downtrend line resistance (white, dotted) while the bulls have been working to support its near-term trend.

Now, as the buyers increase the pressure, the $2.5 area is key to confirming a strong trend reversal. A drop below its trendline resistance would find proving grounds near the $2.4 mark before eventually conforming to its uptrends.

At press time, MANA was trading at $2.47, up 4.64% in the past 24 hours.

4 Hour MANA Chart

Source: TradingView, MANA/USDT

After dropping its ATH, MANA lost over 70% of its value and hit an 11-week low on January 22. Since then, it has seen a promising rally before reversing from its 1-month trendline resistance.

Over the past ten days, MANA has been advancing in an ascending wedge (white) on its chart 4. The price is now approaching a tighter phase after a week-long volatile phase. Thus, the gap between the upper and lower band of the Bollinger Bands (BB) seems to be decreasing. Additionally, the recent bullish engulfing candlestick has created a short-term demand zone for the alt in the $2.4-$2.5 range.

Going forward, MANA could see growth all the way to the $2.5 mark before the bears attempt to pull back from the upper BB band. Additionally, if the bears keep the trendline resistance intact, the alt will remain in its demand zone while breaking out of its reversal pattern. Any close above $2.5 would confirm a long-term trend reversal on the 4-hour chart of MANA.


Source: TradingView, MANA/USDT

While the 55 mark remained firm, the RSI marked lower lows on the last day before recovering from this level. Hence, revealing a hidden bullish divergence with its price. This reading opened doors to test the upper band of the BB ahead of a near-term pullback.

Nonetheless, the CMF has dipped below the zero line over the past few hours. This reading hinted at cash outflows from the crypto as fear sentiment prevailed.


As MANA enters a tighter phase, it aims to test the $2.5 zone before facing a possible pullback. Any break below the pattern could lead to a test of the $2.4 support. Additionally, alt shares a 31% 30-day correlation with Bitcoin. Thus, monitoring the movement of the king piece would be helpful in complementing the above analysis.