Why Decentraland [MANA] It will continue its downtrend on the price charts

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice

  • The critical resistance levels are at $0.72 and $0.82
  • Despite the recent rebound, the bearish order block hampered the bulls’ efforts

Decentraland has a market capitalization of $1.12 billion at the time of writing, but that number may drop in the coming weeks. The MANA index has been strongly bearish since August. His inability to hold at $0.75 led to another wave of selling in the market. A similar scenario could develop if MANA drops below $0.6.

This is the AMBCrypto price prediction for Decentraland [MANA] 2022

Decentraland has developed a bearish divergence on the charts near the important Fibonacci retracement level. This development, combined with the lack of demand in recent weeks, indicates that the MANA may be headed for another downward move on the price charts.

Vendors attack may resume soon

Source: MANA / USDT on TradingView

Based on the decline from $0.755 to $0.584, a set of Fibonacci retracement levels was drawn. The 38.2% retracement level of this move was at $0.65. This level has been a strong resistance for the past two weeks.

At this key level, a bearish order block is observed. Marked in red, it indicates an area where traders can look to enter short positions on MANA targeting a move to $0.584 or even lower, the 23.6% extension level at $0.544.

The A/D index has formed a series of lower highs since mid-September to show that selling pressures were in control. The 12-hour RSI has been neutral below 50 for nearly two months to show steady downward pressure. The market structure was also bearish, although it broke the structure two days ago when the price closed above $0.618.

Marked in white, a bullish divergence was seen, which was followed by a bounce from $0.59 to $0.625. This development was followed by the development of a hidden bearish divergence (white dotted) which indicates that the previous downtrend is likely to continue.

MVRV is at a long-term low, with no sign of a bottom yet

Here's why to use Decentraland [MANA] It will continue its downtrend on the price charts

Source: feeling

In January 2019, the 365-day MVRV ratio hit a low of -60.5%. In May, when the price fell to $0.7, the ratio dropped to -71.8%. At the time of writing, it is -71.15%. The conclusion was that the majority of token holders were confused. Social dominance is also not as high as it used to be, but in recent weeks this measure has risen to 0.7%.

This in and of itself does not mean that the price has found its long-term bottom. It could still go lower, and technical analysis showed that another move below $0.6 could occur in the coming weeks.

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