Decentraland (MANA) Primed for Downswings before a 20% Rebound

Briefly –

  • Decentraland price seems ready to lose the 70.5% retracement zone at $3.47 as its support, confirming downswings.
  • Meanwhile, retesting the next floor at $3.18 might catalyze an 18% surge towards $3.77
  • However, breaching the range low at $2.47 will nullify the bullish narrative.

Decentraland price has chances to present a buying opportunity before buyers launch a comeback to support a minor upsurge. For now, market players need to watch critical support that has a higher probability of triggering a price reversal.

Decentraland Price Plans a Comeback

Decentraland’s MANA plummeted by 41% from the high of $5.89 to its current price near $3.44. The downswing came as the metaverse coin reflected the December 4 market crash. Though the altcoin registered a swift recovery, buyers’ momentum seems to fade, translating to further plummets.

MANA downswings might provide an opportunity for long positions. However, that will happen if the coin bounces off the 79% retracement zone at $3. 19. The resulting price actions might propel the token higher overpowering the closest obstacle at $3.48, hitting its next target at $3.71.

The rise from the $3.19 low to $3.71 will constitute an 18% upswing. Nevertheless, amplified bullish actions will mean MANA heading high. That way, the gaming token may tag $4.18, a total of 31% increase.

Although this upswing is possible, it depends on whether MANA will bounce off 79% retracement at $3.19. If buyers fail to step up at this zone, market participants can witness Decentraland extending its downtrends to the $2.47 range low.

Bulls will have another chance to trigger an upward move at this level. However, a lower low beneath the range low will mean investors forget about the bullish case.

For now, the overall crypto space sees downswings triggered by the December 4 flash crash. Though cryptocurrencies try to recover from the dip, bears appear strong. Bitcoin fails to reclaim the $50,000 vital level after falling towards the $42,000 level. While writing this analysis, BTC hovers at $47,329. BTC recovery will trigger an uptrend in the alt market. That way, MANA will invalidate its bearishness. Moreover, increased metaverse interest will support Decentraland surges.

By Edward Harris
No widgets found. Go to Widget page and add the widget in Offcanvas Sidebar Widget Area.