๐ Daily TA: Decentraland (MANA/USD) | 16-01-2022
Hodl, dear members of Leofinance!
Today, I would like to comment on the price chart of Decentraland - a metaverse ecosystem that became very popular in the second half of this past year.
The price of MANA skyrocketed in October and November of 2021. MANA/USD went from approximately $0,50 to over $6. After that, in December, a correction started and MANA/USD formed a solid bearish candlestick: Now, in January, the price is stabilizing. And, as of today, there is a candlestick similar to Hammer. I think that the potential Hammer candlestick indicates that the market is taking a break from the recent decline. Nevertheless, I want to underline that till the end of the month there is enough time and this candlestick may change. But, at the moment, the market is taking a break ...
I want to outline that, in the weekly time frame (1W), MANA/USD formed a Bullish Engulfing three weeks ago. It is a common bullish signal: Nevertheless, the bears have revoked this potential bullish signal almost immediately. Two bearish candlesticks with lower highs and lower lows formed. These candlesticks invalidated the Bullish Engulfing technical formation. So, it is a clear signal that the bears continue to dominate the market.
Moreover, according to the daily chart (1D), the bulls should be very cautious as well. The price of MANA has not only been trading below the 30-day Moving Average (MA 30), but it has recently also dropped below the 90-day Moving Average (MA 90): Since the price is below these key MAs I will stay away from the market. I will start looking for a buy signal only if the price returns about MA 90 and MA 30. For now, I will just continue to monitor the market.
Let me remind you, that in the 4-hour chart (4H), MANA/USD has formed a Descending triangle (common trend continuation pattern): Before that triangle, there was a clear uptrend. Hence, the chances of exiting the triangle in the upward direction and resuming the uptrend are high. Even, now, the price is testing the upper line of this triangle. But, I prefer a clear bullish signal in order to enter the market. That's why, for now, as I already mentioned, I will remain in wait-and-see mode.
To be continued ...
As of the time of writing, one MANA costs $3,08 on the Binance exchange, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 and a half years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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