Is This Supporting EMA A Game Changer For Traderadmin
Published 10 mins ago
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.
- 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.
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.
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
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.