The Flag Pattern is leading this correction in the Decentraland (MANA) token price. The token is still stuck inside this model and so far it has almost lost 50% of its value. Long-term traders should wait for a breakout in the uptrend from the overhead trendline for proper long-term entry signals.
Main technical points:
- 100-day EMA provides strong support for the MANA . token
- The ADX slope has shown its value to have decreased significantly
- Decentraland token 24-hour trading volume is $344.9 million, showing a loss of 13.9%
The source-Tradingview
Previously when we mentioned an article about Decentraland token price analysis, the MANA/USD price is trying to recover from the January 5 bloodbath in the crypto market. However, the buyers were unable to sustain the price at the higher level and dropped it back to the 0.168 (2.61) Fibonacci retracement level.
Anyhow, the technical chart shows the formation of a flag pattern on the daily timeframe. This pattern represents a brief respite for the token price before it can resume its upward momentum.
The price of the MANA token trading above the 100 and 200 EMAs indicates an uptrend. On the other hand, however, the 50 and 20 EMAs could act as a valid resistance.
The daily RSI Stochastic shows signs of recovery from the oversold zone. The indicators show some bullish crossover between the K and D lines as it is moving towards higher highs.
MANA . token 4 hour time frame chart
The source- Tradingview
The MANA token price is currently trading at $2.95, with an intraday loss of 1.03%. Cryptocurrency traders should be patient until the price makes a proper break out of the overhead resistance, offering them an excellent entry opportunity.
The Average Directional Movement Index (13) shows a downward sloping line, showing that selling momentum is fading.
The traditional pivot level shows overhead resistance to the MANA price at $3 and 3.36. For the upside, the support levels are at $2.60, followed by $2.20.