- Decentraland might dip to $2.92 following the rejection at the resistance barrier of $3.39.
- The downswing will catalyze an upside action towards the weekly resistance near $3.86.
- A breakdown from the 14 February swing low near $2.72 will cancel MANA’s bullish thesis.
Decentraland (MANA) has witnessed downswings within the past 48 hours and appears ready for a U-turn. However, the alternative coin has room for further declines before catalyzing massive upside movements.
MANA Price Ready to Print Higher Highs
MANA price lost 10% while printing a lower peak following rejection from the resistance zone at $3.39. Nevertheless, the metaverse token flashed bullishness by forming higher lows since 22 January. However, the latest fall in Decentraland aligns with the broad market bearishness.
Nevertheless, the recent buyers’ weakness means a temporary thing for MANA. With that, market players can anticipate MANA to drop and retest the weekly support zone at $2.92. Such a move will attract bullish actions, providing MANA a footing for the upcoming leg up.
The resulting upward move may propel MAN to overcome the hurdle at $3.39 and run towards the weekly resistance mark at $3.86, matching the daily supply territory, stretching between $3.92 and $4.31. In total, the alt might be formulating a 35% upswing to $4.
Surprisingly, IntoTheBlock’s GIOM model supports MANA’s technical outlook. The on-chain metric shows Decentraland’s next obstacle stretched between $3.37 and $3.74. Here, nearly 15,210 addresses that bought 244.75 million MANA coins at $3.57 average price remain out of money. Therefore, a surge in bullish pressure might face resistance from investors attempting to break even.
Furthermore, large transfers worth more than $100K surged to 272 from 94 within the past month. The 189% increase in transactions shows wealth investors interested in MANA at current levels.
As things appear lucrative for MANA price, breaking beneath the 14 February swing low of $2.72 will form a lower low, possibly shifting the sentiment to bearish, canceling the optimistic thesis. With such a case, Decentraland might revisit the three-day support floor near $2.57 before trying another surge.
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