Decentraland (MANA) price has broken its long-term downward spell on Tuesday. Amid a recovery rally, the gains were carried on Wednesday also. Improved risk sentiment after modest initial sections by Western nations on Moscow helped riskier assets to hold some ground.
- Decentraland price edges higher on Wednesday.
- Price moves inside rising wedge pattern to take make 60% upside risk.
- A breakdown of the $2.37 support level could prove bulls wrong.
At the time of writing, MANA/USD is trading at $2.69, up 1.85% for the day. The 16th largest cryptocurrency by market cap held 24-hour trading volume of $965,542,595 as per the CoinMarketCap.
MANA looks for another leg up
On the daily chart, Decentraland (MANA) has observed an ascent of 108% from the lows of January 22 at $1.71. The current price action has multiple hurdles and investors met the supply zone near $3.39 and is currently looking for a new leg up.
As the price moves inside the ‘rising wedge pattern, which is a bearish continuation pattern could see a new rally be on its way, firstly MANA must surpass the 50-day EMA (Exponential Moving Average) at $2.90.
Anticipating the Decentraland price continues to ascend from the current levels, it could climb nearly 20% before meeting the upside filter at $3.90.
On the flip side, a breakdown of the $2.40 support level that coincides with the rising trend line of the rising wedge formation will suggest that the buyers are unable or unwilling to participate further. Furthermore, a daily candlestick close below $2.03 will invalidate the bullish thesis.
In this scenario, MANA could crash lower, retesting the $1.70 barrier.
Technical indicators:
RSI: The Daily Relative Strength Index (RSI) reads at 45 below the moving average line.
MACD: The Moving Average Convergence Divergence (MACD) falls below the mid line with a bearish bias.
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