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MANA holders intone ‘could you find a way to let me down slowly’ as…

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

According to data from Coinglass, more market participants were shorting the asset than longing MANA. That means the majority of the market participants had taken a bearish stance on the coin than the bullish side. The market structure was also in favor of the bears. However, a bullish reversal pattern also appeared to be brewing on the charts.

MANA- 1 Hour Chart

Decentraland: MANA on a persistent downtrend as $2 becomes resistance

Source: MANA/USDT on TradingView

The bullish reversal pattern on the charts was a falling wedge pattern (white). In the past two weeks, MANA had held on tenuously to the $2.09 level of support but slipped beneath it in a wave of selling.

After this drop, the $2 area acted as support in the past few days, but this support has also been broken in recent days. Moreover, the $2 level was also retested as resistance and made a lower low on the charts as well.

The price has touched the wedge pattern multiple times now, and a session close above the upper trendline could see a breakout and a move toward $2.1. However, fear still remained in the market, and a weak breakout before new lows could also be a possibility.

Rationale

Decentraland: MANA on a persistent downtrend as $2 becomes resistance

Source: MANA/USDT on TradingView

The RSI has been below neutral 50 for nearly a week now, with the rally on 25 April being an exception. This was when MANA bounced from $1.84 to $2, before facing rejection and dropping once again.

The OBV has been on a steep downtrend, which suggested that buyers were nowhere to be seen in recent days. To reinforce this idea, the CVD also registered strong bearish bars in the past few days to indicate that the sellers have been dominant.

Conclusion

The market structure was bearish and the indicators showed strong selling occurred as well. This was likely to continue in the days to come. However, because of the formation of a wedge pattern, a minor bounce toward $2 can not be discounted.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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