MANA Price Analysis: Escaping This Flag pattern MANA Token Could Rally To $5.5 Mark

A Flag pattern is leading this correction rally in Decentraland (MANA) token price. The token is still trapped inside this pattern, and so far it has almost lost 50% of its value. The long traders should wait for a bullish breakout from the overhead trendline to acquire a proper long entry signal.

Key technical points:

• 100-day EMA provides strong support to MANA token
• The ADX slope has shown a significant drop in its value
• The 24-hour trading volume in the Decentraland token is $344.9 Million, indicating a 13.9% loss

Source-Tradingview

Previously when we covered an article on Decentraland token price analysis, the MANA/USD price was trying to recover from the January 5th bloodbath in the crypto market. However, the buyers couldn’t sustain the price at a higher level and dropped it back to the 0.168 Fibonacci retracement level(2.61).

Anyhow, the technical chart shows the formation of flag pattern in the daily time frame. This pattern represents a short resting period for the token price before it could continue its upside rally.

The MANA token price trading above the 100 and 200 EMA states a bullish trend. However, on the flip side, the 50 and 20 EMA lines could act as a valid resistance level.

The daily-Stochastic RSI shows recovery signs from the oversold region. The indicators displays several bullish crossovers between the K and D lines as it is charging towards the higher levels.

MANA Token 4-hour Time Frame Chart

Source- Tradingview

The MANA token price is currently trading at $2.95, with an intraday loss of 1.03%. The crypto traders should be patient till the price give a proper breakout from the overhead resistance, providing an excellent entry opportunity for them.

The average directional movement index(13) displays a downward slope, indicating the losing selling momentum. 

The traditional pivot level indicates the overhead resistance for MANA price is $3 and 3.36. As for the opposite side, the support levels are $2.6, followed by $2.2.

The post MANA Price Analysis: Escaping This Flag pattern MANA Token Could Rally To $5.5 Mark appeared first on CoinGape.

Source: https://coingape.com/markets/decentraland-price-analysis-escaping-the-flag-pattern-mana-token-could-rally-to-the-5-5-mark/