Decentraland (MANAUSD) Rallies Into A Bearish Order Block
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MANAUSD Technical Analysis: Price Rises Into A Bearish Order Block
MANAUSD rallies into a bearish order block following a bullish divergence signal by the Relative Strength Index (RSI). The explosive rally appeared to be aiming to change the market’s direction bias, but the overall trend remains bearish on the higher timeframe.
MANAUSD Significant Zones
Demand Zones: $0.4280, $0.2840
Supply Zones: $0.7440, $0.5850
Immediately after the bullish divergence signal by the Relative Strength Index (RSI), MANAUSD began to expand aggressively to the upside. This expansion continued until the previous resistance at $0.4280 was broken and the price moved further into the bearish order block above the $0.5850 supply zone. The current trading range of MANAUSD is defined on the daily chart by the $0.7440 and $0.2840 price levels. As of now, the market is at a premium, so a retracement or a total reversal to the downside is highly probable.
More reason for the possibility of a retracement or a total reversal is due to the rapid and sudden movement the price made to the upside; algorithmically, it makes sense for the price to fill the liquidity void left along the bullish path. Before the bullish divergence, the market was typically dominated by the bears, and MANAUSD was descending in fractals. The first bearish wave began at $1.1290, and the price dived downward until the previous support at $0.5850 was hit. However, the selling pressure overwhelmed the support level after a short retracement to the upside.
Market Expectation
As of now, the market is reacting toward the bearish order block following the obvious rally on the four-hour chart. Should the selling pressure at the bearish order block eventually crush the market, MANAUSD might continue its bearish movement for a very long time.
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