Posted on July 6, 2022
Decentraland (MANA) price is showing a bullish reversal from the $0.70 mark, resulting in the symmetric triangle pattern in the daily chart. With the help of the support trendline, the buyers are keeping the market price above the $0.80 mark. Thus, the increased bullish influence prepares a breakout attempt to break above the resistance trendline of the triangle pattern. Should you view this breakout as an opportunity to buy this token?
- MANA price resonated in a symmetrical triangle pattern for almost two months.
- A positive divergence in the RSI chart favors a bullish triangle pattern
- The 24-hour trading volume in the Decentraland token is $242.2 million, indicating a gain of 11%.
After the April-May bloodbath, the MANA/USDT pair started to take a sideways path. Additionally, the inability of market participants to break above the swing high or low indicates uncertainty among traders.
However, the technical chart reflects this consolidation in a symmetrical triangle pattern, which should bring a directional rally in MANA price. Either way, the late June selloff in the crypto market triggered a bear cycle in this pattern and sent the altcoin down 20%
Additionally, the upward support trendline rekindled the bullish momentum and the MANA price recovered 12.5%.
Additionally, the symmetrical triangle pattern is a continuation pattern that extends the prevailing trend after a short break. However, the pattern contains a break possibility on each side.
Thus, a possible break of the aerial resistance could push the MANA price up 50% to the $1.35 mark.
Conversely, the trendline breakdown of support could send the price plunging to the May low of $0.627.
RSI indicator: Despite a rally in range, the daily upward slope of the RSI indicates a steady increase in the underlying uptrend. Thus, the indicator could soon enter bullish territory.
Bollinger Band Indicator: With the recent price surge, MANA price broke through the middle line of the indicator, which provided consistent resistance from MANA price. However, the upper band aligned with the descending trendline increases the air barrier resistance.
- Resistance Level: $0.93, $1.12
- Support Level: $0.76, $0.62
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.