The market participants showing strong interest in the discounted metaverse tokens have brought a significant recovery in Decentraland(MANA). Though the recent bullish reversal from $0.65 support doubled the altcoin price in just three days, the buyers still struggle to surpass the dynamic resistance trendline.
Key points:
- The MANA price faces supply pressure at a descending trendline.
- A possible reversal would encourage the MANA sellers to pull the price back to $0.65
- The 24-hour trading volume in the Decentraland token is $1.57 Billion, indicating a 27% gain.
Source-Tradingview
A symmetrical triangle pattern fallout on April 6th, outburst a strong selling momentum trapped within this 4-month consolidation. The price pattern bolstered MANA sellers to resume the prevailing downtrend and breach the immediate support level of $2.
Amid the recent sell-off in the crypto market, the downfall pierced through some additional support levels and marked $0.63 as the new 2022 low. Furthermore, the MANA sellers actively respond to a resistance trendline to maintain a steady downfall.
However, on May 13th, the MANA price bounced back from the $0.63 support and surged 106% to retest the descending trendline. Moreover, a high-wick rejection attached to the daily candle suggests that altcoin faces strong selling pressure.
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A possible reversal would encourage the MANA sellers to pull the price back to $0.63.
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However, a significant rise in bullish reversal could assist traders to breakout from the overhead resistance and drive the altcoin price to the $2.8 mark.
Technical indicator
The Supertrend indicator highlights an overall downtrend and bolsters the reversal theory.
In addition, the daily-RSI slope shows significant divergence and follow-up rally contrary to the falling price, indicating the overextended selling has stabilized. However, if the divergence grows stronger, the altcoin may eventually breach the resistance trendline.
- Resistance level: $1.11 , and $1.66
- Support level: $0.62, and $0.4
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