Decentraland (MANAUSD) Drops, As Market Consolidates

MANAUSD Analysis: Price Falling As Market Distributes At Supply Zone

MANAUSD faces a downward as the market distributes at the supply zone. A markdown is looming as the price keeps consolidating just below the $0.8340 level. The consolidation seems to be in the form of an ongoing Wyckoff schematic.

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

The markup from the $0.2840 demand zone caused a change in the market’s bullish environment. The Moving Average Convergence Divergence (MACD) also signaled to buy as it crossed the zero line to the upside. However, MANAUSD now seems to be in a distribution phase as it consolidates at the premium and below the $0.8430 supply zone. The market’s trading range, which is bounded by the $1.1290 and the $0.2840 major levels, has been held for a very long time. Therefore, it will take an enormous influx of buy orders to break the $1.1290 price level. Similarly, an enormous influx of sell orders will break the $0.2840 price level.

As of now, MANAUSD hovers at the premium, below the $0.8430 price level, which coincides with the 79.0% Fibonacci retracement level. Before the massive expansion early this year, the market was momentarily declining alongside a falling trendline. This falling trendline was finally broken on January 13, 2022, due to the massive expansion. However, the expected downtrend due to the distribution phase may be thwarted by the falling trendline as the price approaches the trading range discount.

Market Expectation

The Wyckoff Distribution Schematic is about to be complete as the price faces the downside on the four-hour time frame chart. The double bottom is expected to be invalidated as MANAUSD heads down to the discount.