MANA to the moon; bull pennant presents massive breakout opportunity
Decentraland’s native token MANA took shape within a bull pennant and projected a massive surge from the pattern. Possibly buoyed by Facebook’s rebranding to “Meta,” Ethereum-based MANA allows users to buy virtual plots of land, who then have the freedom to monetize the plots as they see fit.
On the charts, MANA embarked on a near 600% upwards run to an ATH of $4.9 on October 27. Should bulls capitalize on this opportunity, MANA would set its sight at $9-mark and above.
MANA 4-hour Chart
Consecutive lower highs and higher lows following an earlier rally formed a bull pennant on MANA’s 4-hour timeframe. Based on the flagpole’s length, MANA eyed a 300% upwards run from the breakout point. A close above $3.50 price ceiling could trigger this projected swing and set MANA on course to its immediate price targets at the 138.2% and 161.8% Fibonacci levels.
Note that a possible 300% surge would lift MANA towards the $14-mark, but the 200% Fibonacci Extension could initiate a correction as it would serve as a lucrative take-profit for investors.
Meanwhile, the stage was set for a breakout after the RSI stabilized around 57. This development allows MANA to maximize its potential without fears of overbought readings along the RSI. On the downside, the projected upswing might be delayed for a few more days as the MACD and Awesome Oscillator ease from record levels.
Should bears cut below the 50% Fibonacci level, MANA would end it streak of higher lows and could extend losses all the way towards the 23.6% Fibonacci level before any bullish countermeasures.
MANA could tag its 200% Fibonacci Extension following a breakout from its bullish pennant. Traders should be on the lookout for a decisive close above $2.50-resistance, which could act as a catalyst for the incoming rally. However, some fears could start to creep in should MANA lose out to the 50% Fibonacci level. Shorting would be a better call thereafter.