MANA's Destiny Hangs in the Balance: Critical Support Zone Decides its Fate – Will it Bounce or Crumble?

25 Sep 2023 by Crypto Presale 2 min read

The year has been bearish for MANA, despite its strong start to the year. MANA rallied by almost 200% earlier in the year, from its 2022 low of $0.29 to a little above $0.8. However, in March, a series of negative events, including the shutdown of Silvergate operations, ongoing interest rate hikes, and regulatory uncertainties, led to a significant market selloff. As a result, most of MANA's gains were wiped out, making it a bearish year overall.

In the last 24 hours, MANA’s price has increased by 1.58%, while the price has fallen by 3.54% in the last 30 days and by 10.75% in the last 90 days.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, Decentraland (MANA) is currently resting on major support around the $0.28 zone. This is a delicate zone, as the token can either break below this zone or bounce off this zone and trigger a rally. The RSI is showing signs of bullish divergence, which means the buying momentum is getting stronger. Also, buyers are making an effort to break above the inner trendline (yellow line); a break above this trendline can signal a trend reversal and potential price rally to the next resistance around the $0.35 and $0.45 zones.

4 Hour Timeframe

Source: TradingView
In the 4-hour timeframe, the market is forming some sort of inverse head and shoulder pattern, which is a valid trend reversal formation. A break and close above the neckline around the $0.3 price mark can see MANA’s price rally. Also, the RSI is currently at 53%, which shows that the buyers are dominant on this timeframe. MANA is also trading above the 50-day EMA and close to the 200-day EMA. This might mean that a trend reversal is imminent.

Will MANA Bounce or Crumble?

Right now, it’s too early to say for sure if MANA will break below this critical support zone or bounce off it.

Source: TradingView

On-chain analysis for MANA shows that the netflow of large holders has increased by 85% in the last 30 days. This indicator means that there is a jump in the number of whales accumulating MANA. This can be good news, as it shows that there is a positive sentiment among investors. If this buying momentum continues, MANA might bounce off this critical zone, and we might see a price rally in the coming days.

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