Decentraland (MANAUSD) Overall Trend Remains Bearish As Diagonal Resistance Fails
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MANAUSD Analysis: MANAUSD Overall Trend Remains Bearish As Diagonal Resistance Fails
MANAUSD overall trend remains bearish even after the diagonal resistance fails. Following the sudden retraction from the breaker block, the buyers of Decentraland aimed to see the diagonal resistance break. While the attempt failed, a second attempt might be successful when MANAUSD returns from the bullish order block.
MANAUSD Significant Zones
Demand Zones: $0.4280, $0.2840
Supply Zones: $0.8430, $1.1290
The current trading range lies between the $0.8430 resistance and the $0.2840 support. Following MANAUSD quick surge from the breaker block, the price headed upward in an attempt to break the diagonal resistance to the upside. The breaker block was created on November 10, 2022, as the price of Decentraland crashed to the downside. The crash could be traced to the creation of the swing high on November 5, 2022. MANAUSD sank deeply into an oversold state, as revealed by the Stochastic Oscillator.
In a bid to recover from the oversold state, the bulls raided the market with a high volume of orders. Price experienced a sudden surge that eventually drove it from an oversold state to an overbought state in one month. The diagonal resistance might get invalidated soon as the price of Decentraland radiates below it. MANAUSD is likely to break the diagonal resistance before sweeping the sell-side liquidity below the low at $0.4830. After this, MANAUSD might head into the daily bearish order block below the $0.84340 resistance before resuming the downward trend.
Market Expectation
The bullish trend has been confirmed by the CHOCH and the BOS on the four-hour chart. However, a correction to the downside is expected as the Stochastic Oscillator reveals that Decentraland is overbought. From the four-hour bullish order block, MANAUSD is expected to expand upward into the daily bearish order block.
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