Thursday, April 18, 2024

Decentraland: Price Consolidation Hints at Potential Breakout Rally Above $1.

The price consolidation of Decentraland (MANA) appears to be nearing the end of its current phase as it gets ready for a breakout. If effective, long-term and patient MANA holders could benefit from double-digit returns from this move.

Decentralised pricing prepares the market for an increase

After 575 days of consolidation below the $0.788 resistance level, the price of Decentraland is now getting close to important levels. MANA formed a bottom reversal pattern known as the Adam and Even setup during its nearly two-year consolidation.

There are two bottoms in this technical formation: the first is rounded, and the second has a sharp v-shaped recovery. If the pattern is correct and the price breaks the neckline at $0.788, which is calculated by adding the depth of the second bottom to the breakout point, a 64% rebound to $1.292 is predicted.

Given that the overbought zone has been retested by the Relative Strength Index (RSI) recently, a retest of the 50 mean level would raise the likelihood of a breakout. The price of Decentraland will probably remain trapped between the $0.788 and $0.542 barriers until this occurs.

Although the long-term forecast for the price of Decentraland is still positive, a short-term rise in selling pressure may cause MANA to reverse. In that scenario, the bullish thesis would be refuted, and a lower low would be made if the price of Decentraland broke $0.542.

A similar event might trigger panic selling, drive MANA down 22%, and force it to retest its swing low of $0.423, which was reached on January 29.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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