Analyst points out where the price of Decentraland (MANA) go2 min read
Although Decentraland (MANA) was one of the cryptocurrencies that appreciated the most at the end of last year, at the beginning of 2022, the metaverse token is struggling to maintain its value, just like BTC and the main cryptocurrencies on the market.
For most of January, the price action was either trading sideways or falling, there were rarely bullish days. Also, it doesn’t look like the current levels are what interests investors as there are huge sell orders.
According to the analyst Filip L, traders can expect uA drop lower to $2.60 or even $2.15 before investors start buying MANA again with hopes of a rally.
According to him, Decentraland is keeping investors on edge as the asset has been trading sideways in recent days.
“Each time MANA’s price action appeared to be making mature gains, it faltered. And as a result, it failed to close above the 78.6% Fibonacci level at $3.00. As this level has been reduced so much in the last few days, it has started to lose credibility, and the bulls will not want to be stuck at that level,” he said.
Where the price of MANA go
Furthermore, the analyst pointed out that the MANA price will need to correct some percentages first, before investors want to go long again.
In this regard, he pointed out that a dip towards the low of $2.57 or $2.15 and just below the S1 monthly support level could be valid entry points.
“With that, the Relative Strength Index (RSI) will enter oversold territory and trigger profit taking among short sellers,” he said.
However, he also pointed out that sentiment could change and MANA price action may be able to leave $3.00 behind and start testing $3.66, where the 55 Simple Moving Average (SMA) days and the monthly pivot and 61.8% Fibonacci level fit.