Decentraland (MANAUSD) Hops Upward As The Price Leaves Oversold State
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MANAUSD Analysis: MANAUSD Hops Upward As The Price Leaves An Oversold State
MANAUSD hops upward as the price leaves an oversold state. According to the Stochastic Oscillator, the market is oversold. It implies that a correction to the upside or a total reversal is impending. However, MANAUSD is in a bearish environment, and the price has yet to leave the premium zone.
MANAUSD Significant Zones
Demand Zones: $0.4280, $0.2840
Supply Zones: $0.7000, $0.8430
The current bearish trend started with the head and shoulder pattern formation. This head and shoulder pattern formed in the first week of February 2023. The head and shoulder pattern happened to be a trend reversal pattern. It signified the loss of buying momentum to keep driving the price upward. Before the head and shoulder pattern formed, MANAUSD skyrocketed tremendously. As the price entered an overbought state, most buyers took profits.
Due to the profit-taking, a correction phase ensued, thereby causing the formation of the head and shoulder pattern. Fast forward to the current direction bias of the market: MANAUSD seems to be starting a correction phase. Due to the state of the market as per the Stochastic Oscillator, an upward correction or reversal is necessary. Should the swing high at $0.7000 be respected, MANAUSD will continue its decline into the discount.
Market Expectation
The Moving Average shows that the market ranges on the four-hour chart. The ranging market environment indicates a correction phase is about to set in. A deep surge into the premium zone will happen before the downtrend resumes.
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