Decentraland (MANA) – Switched to a consolidation mode

Decentraland (MANA) – Switched to a consolidation mode

Posted on Wednesday, December 8 2021 at 9:45 pm GMT+0000

MANA punched through the bearish resistance line capping the highs of the recent bearish correction and switched to a consolidation mode preparing for its next directional move.

Although the exponential moving averages are still negatively aligned, the price is testing the broken trendline which is providing adequate support. Also, the short-term oscillators which are transmitting a positive bias. The RSI is pointing north near its 50 neutral mark while the MACD is trending upwards above its red signal line.

Should the bullish forces prevail, and the price surpasses the 20 and 55-period exponential moving averages, the first resistance point might surface around the 4th of December intraday swing high at 4.24. Overcoming this barrier, bulls might target the 161.8% Fibonacci golden number at 4.87. If the upward pressure persists, the bullish wave could extend towards the 261.8% Fibonacci extension coinciding with the all-time high at 5.9.

Alternatively, if sellers retake control, the price may meet immediate support at the trendline around the 3.5-3.4 level. Should the selling pressure intensify, the bears might then aim at the December 6 obstacle at 3.2, a violation of which would turn the focus to the 4th of December bottom, where price could find a tough ground to break.