• 13 July, 2024
Market News

Decentraland (MANA) Retraces to Lows of $0.6345 After the Recent Rally

Decentraland price analysis, the drop below $0.62 meant the structure was bearish, and the coin was trading in a bearish trend. Decentraland is down 1.08% in the last 24 hours, currently trading at $0.6345. The Fibonacci Retracement level of 76.4% showed that the coin was in a bearish trend, with strong resistance levels broken at $0.67 and $0.71.

Decentraland price chart: Coinmarketcap

In 2023, Decentraland significantly excelled. Its token went through a steep decline between February and March on the price charts, with the $0.623 level of support being breached in early March. Fortunately, though, thanks to gains from the past week, it has been transformed back into an area of support once again.

In early February, Decentraland’s price jumped from $0.29 to an incredible high of $0.84 in just six weeks – representing a staggering 195% growth! This monumental surge shattered the bearish trend plaguing Decentraland since August 2020 and decisively changed market sentiment into optimism for the future.

The Fibonacci retracement levels indicated that, despite the significant retreat in recent weeks, a 61.8%-78.6% golden pocket remained as a source of support. This signified there was potential for MANA to trend higher, much like it did in early 2023.

The Awesome Oscillator displayed bearish signs of momentum. However, the green bars on the histogram showed a weakening in this sentiment. Additionally, OBV was still in a downtrend and had not broken it’s previous lower high. This all aligned with an overall bearish market structure.

MANA/USD 4-hour chart: TradingView

Decentraland price action in the last 24 hours indicates the price formed higher highs at $0.68 and $0.71, prolonging the bullish momentum for a few hours before it reversed to form lower highs at $0.67 and then lower lows at $0.63 as selling pressure increased in the market.

The white-colored fair value gap on the daily chart synced with a bullish breaker (red) near $0.6, likely resulting in an uptrend towards the bearish order block located at $0.71 should prices dip into that region.

MANA/USD Technical Analysis

The technical indicators on the daily chart show MANA has been trading in a sideways trend since last week, with the MACD line and signal line crossing bearish in the oversold region, suggesting a slight downward pressure on price. The RSI also entered into the oversold region as selling pressure increased.

MANA/USD daily chart: TradingView

The key support level for MANA is at $0.62, and the resistance level is currently seen at $0.67. A break above the resistance level will indicate that the price is in an uptrend, and further upside can be expected. However, if the price breaks below the support at $0.62, we may expect to see a further drop in MANA price.

Ultimately, the technical analysis on the 4-hour chart indicates the bears have the upper hand as the coin continues to remain bearish. The 30-day MVRV ratio is also showing bearishness as the ratio dropped to -5.5%. It indicates that traders are in a loss position and accumulating at current levels.

Looking ahead, bulls will have to gather momentum to break past the Fibonacci resistance level of $0.71 to signal a reversal of a trend. Until then, Decentraland will remain in a bearish trend. MANA’s current support levels of $0.62 and $0.67 need to be held for the bulls to gain strength and push prices higher.

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