Buyers Exit Decentraland (MANAUSD) Market As Price Drops

MANAUSD Analysis: Buyers Exit The Market As Prices Plummet Momentarily

MANAUSD buyers exit the market as the price plummets momentarily. Since the $0.8430 price level was hit, MANAUSD has been declining alongside a diagonal resistance. However, while the selling pressure keeps increasing, the market’s environment remains bullish.

MANAUSD Significant Zones
Demand Zones: $0.2840, $0.4280
Supply Zones: $0.8430, $1.1290

Following the consolidation phase that occurred within the $1.1290 and $0.8430 price levels between May 2022 and August 2022, the market headed to the downside. The rejection of the price at the resistance of the range, which was at $1.1290, caused a swift decline into a descending channel. MANAUSD buyers reacted by closing their positions as they fled the market in fear. Though with decreased momentum, MANAUSD kept descending the channel. This pattern continued for the next eight weeks after the price broke through the previous support level of $0.8430.

The rapid decline resumed immediately, with the price threatening to breach the previous support level of $0.4280.The $0.4280 price level was later retested on December 6, 2022, to further execute more sell orders that successfully drove the price downward. After the sell-side liquidity grab below the $0.2960 price level, the price hit the major support at $0.2840 and surged to the upside. A successful breakout from the $0.4280 price level induced more buying pressure as more MANAUSD buyers stormed the market with their buy orders. As of now, the market is in a correction phase. MANAUSD might continue expanding upward as soon as the discount is reached.

Market Expectation

The market is clearly in a downtrend on the four-hour chart. As the price continues to decline alongside the diagonal resistance, MANAUSD is expected to see a massive crash that will likely invalidate the previous low at $0.6250.