Why Decentraland [MANA] will continue its downtrend on the price charts

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation

• Essential resistance ranges at $0.72 and $0.82
• Regardless of the latest bounce, a bearish order block impeded the bulls’ efforts

Decentraland had a market cap of $1.12 billion at press time, however this determine might go decrease within the coming weeks. MANA has been strongly bearish since August. Its lack of ability to carry on to $0.75 introduced one other wave of promoting to the market. The same state of affairs might unfold if MANA headed beneath $0.6.

Right here’s AMBCrypto’s Worth Prediction for Decentraland [MANA] in 2022

Decentraland developed a bearish divergence on the charts close to a Fibonacci retracement degree of significance. This improvement, together with the dearth of demand in latest weeks, hinted that MANA is likely to be headed for one more transfer decrease on the value charts.

The onslaught from the sellers can resume quickly

Supply: MANA/USDT on TradingView

Based mostly on the transfer down from $0.755 to $0.584, a set of Fibonacci retracement ranges was plotted. The 38.2% retracement degree of this transfer lay at $0.65. This degree has acted as a stiff resistance over the previous two weeks.

At this key degree, a bearish order block was noticed. Marked in pink, it highlights a area the place merchants can look to enter brief positions on MANA concentrating on a transfer to $0.584 and even decrease, the 23.6% extension degree at $0.544.

The A/D indicator fashioned a sequence of decrease highs since mid-September to indicate promoting stress was dominant. The 12-hour RSI has been beneath impartial 50 for practically two months to indicate regular downward stress. The market construction has additionally been bearish, though it broke the construction a few days in the past when the value closed above $0.618.

Highlighted in white, a bullish divergence was seen which was adopted by a bounce from $0.59 to $0.625. This improvement was adopted by the event of a hidden bearish divergence (dotted white) which denoted that the earlier downtrend was prone to proceed.

MVRV is at long-term lows, with no indication of a backside but

Supply: Santiment

In January 2019, the 365-day MVRV ratio reached a low of -60.5%. In Could, when the value dropped to $0.7, the ratio went as little as -71.8%. On the time of writing, it stood at -71.15%. The inference was {that a} majority of the token holders had been at a loss. Social Dominance was additionally not as excessive because it as soon as was, however latest weeks did see this metric push larger to 0.7%.

That, by itself, doesn’t imply that the value has discovered its long-term backside. It might go decrease nonetheless, and technical evaluation confirmed that one other transfer beneath $0.6 might materialize within the coming weeks.