Decentraland (MANA/USD) Aims to Breach the $0.2540 Level
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Price Analysis: Bearish Momentum Persists With Short-term Pullback Expected
MANA/USD has been in a sustained bearish trend, struggling to breach the significant support level at $0.2540. This level has been tested multiple times over recent months, first in early June 2024, again in early August 2024, and most recently with current price action indicating another retest. Despite repeated attempts, the $0.2540 level has held firm, leading to slight consolidation around this area.
However, this consolidation is expected to give way soon, as the multiple retests have likely weakened the support’s strength. Technical indicators suggest a bearish outlook is imminent, especially after the daily Fair Value Gap (FVG) has been filled.
MANA/USD Key Levels
Demand Levels: $0.2540, $0.2000
Supply Levels: $0.3290, $0.3740
Price action reflects the growing bearish sentiment. The daily Moving Average (MA) continues to signal downside momentum, with the price trading below the indicator, reinforcing the bearish bias. Additionally, the daily Relative Strength Index (RSI) highlights a continued decline in price strength, further supporting the possibility of a breakdown below $0.2540.
On the 4-hour chart, there has been a bearish break of structure, indicating a continuation of the downward trend. However, a short-term pullback is anticipated as the minor trendline has been breached. The 4-hour RSI is showing rising momentum, providing a confluence for this expected retracement. Price is likely to retest a 4-hour order block before resuming its bearish trajectory.
Market Expectation
In the near term, price can experience a brief bullish move as the price retraces towards this key 4-hour order block. However, the overall market sentiment remains bearish, and a continuation of the downward trend is expected once the pullback is complete. With weakening support at $0.2540 and technical indicators aligning with a bearish scenario further downside is expected.
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