MANA at a critical moment, will it hold up? Monday AT

In this first AT of Monday of September, you will discover an analysis of MANA, the native cryptocurrency Decentraland. Developed on Ethereum, it is a project that was very popular at the end of 2021. However, for the past few months, investor interest in the metaverse has continued to fall, reaching lows than we hadn’t seen for a while. The objective of the analysis is to determine the key levels of MANA, the bias to have and the contrary scenarios that we can establish in order not to be surprised by the market.

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MANA still maintains a key area

MANA rate against the dollar on a weekly basis (1W)

You can see that after an all time high at $5.90, MANA entered a powerful downtrend. Assets, assets recorded a loss of more than 86 percent. If you have the eye, you have surely noticed that MANA is currently in a range. Indeed, since the end of May, it has been moving between resistance at $1.129 and a support zone (shown in blue) at $0.782-0.745.

As long as it does not break one of the two levels, we will always be in this range with a price that oscillates up and down between the two limits. An upside breakout is less likely since the asset is currently in a downtrend and has clearly gotten rejected on the EMA13. However, if he manages to overcome the 1.129 dollar, it will be necessary to monitor the 1.23 and the 1.34 dollar which are respectively the EMA25 and EMA32.

As for the bearish breakout, this will result in a potential return of the price to its summer 2021 support at $0.489 or even, in a more pessimistic case, a price around $0.376. However, intermediate levels can be identified. Let’s go to the daily chart to see a little more clearly.

A return to be expected on the pivot of the range?

MANA cryptocurrency price against the dollar on a daily basis
MANA price against the dollar on a daily basis (1D)

On the daily chart, we have a more detailed view of price fluctuations. After some fairly recent rejections on the upper boundary of the range, MANA has lost its uptrend (downside breakout of all 13/25/32 EMAs). Thereafter, quite quickly, it lost the 50% Fibonacci which is the pivotal level within this range. Indeed, this level has acted as support as well as resistance since the end of May. For MANA, the current challenge is to relaunch an uptrend to hope for a return to the upper limit of the range for an attempted breakout on the upside. If successful, the key target will be $1.34, a previously mentioned plateau where the EMA200 is located as well as a horizontal level.

However, it is possible to have an attempted revival of the uptrend which could result in a rejection on the 50% Fibonacci. In this case, the signal would be clear: the sellers are stronger than the buyers. If this is the case, we should expect a downward break of the lower band. Besides the summer 2021 support at $0.489, it is possible that the price will react on the $0.63 as well as the $0.548. This will mainly depend on the dynamics in which Bitcoin and Ethereum will evolve and if the latter should revisit the lows of last June.

Here we are at the end of this technical analysis. You can see that the MANA is currently in a downtrend on a weekly and daily basis. Moreover, it is currently at a key level: the lower limit of the range in which it has been evolving for several months. From now on, whether the breakout is bullish or bearish, you must be ready to react and not be surprised by the market, which will be ruthless with the least rigorous people. For the moment, given the price action, the cryptocurrency market as a whole and the situation of the American indices, it is preferable to keep a bearish bias which may evolve according to the evolution of MANA within its range. .

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