Is This Supporting EMA A Game Changer For Trader

The Decentraland (MANA) price has resonated between the $1 and $0.75 barriers for nearly two months, indicating a range-bound rally. However, today, the coin price is down 5.6%, showing an evening star candle at $1 resistance. This reversal set-up may trigger another bear cycle within this range, suggesting the continuation of the consolidation phase for a few more sessions.

Key points:

• The higher price rejection candles at $1 fuel the downtrend in MANA prices. 
• The MANA price has dropped 11.5% from the $1 resistance
• The 50-day EMA attempts to bring an early bullish reversal within the range.

Source-Tradingview

After failing to exceed the 20-day EMA at $1.37, the MANA prices fell sharply to $0.76 during a downtrend between May and June. During these two months, the downtrend accounts for a 42% fall under the influence of 20day EMA. 

However, the price trend took a lateral shift leading to a consolidation range between $0.76 and the psychological mark of $1. The MANA price moves freely around the EMAs between the range, but the recent bearish rejection within the range attempts to take support at the 20-day EMA.

Currently, the overall sentiment suggests a downfall to the $0.76 mark acting as the ultimate support level to restart a bull cycle. The higher price rejection in the previous two daily candles supports this ideology of a downtrend continuation.

If the prices take an early bullish reversal from the supporting EMA, a price jump above the consolidation range can face opposition at $1.12. However, traders can find the bullish breakout bringing a growth potential of 12%.

Conversely, from a highly bearish point of view, the fallout of the $0.76 support level can lead to a downtrend rally to $0.61.

Technical indicator

DMI indicator: the DI lines maintain a bullish alignment with a growing ADX line indicating a rise in trend momentum. 

RSI indicator: The daily-RSI slope showcases the rise in underlying bearishness as it falls sharply within the nearly overbought zone to test the 14-day SMA and the midline.

• Resistance level: $18.15 , $24.
• Support level: $15.24, $12.46