Decentraland (MANAUSD) Retraces Upward As Price Leaves The Discount Zone
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MANAUSD Analysis: Market Retraces Upward As Price Leaves The Discount Zone
MANAUSD retraces upward as the price leaves the discount zone. The market has been algorithmically bearish since the year began. Price made significant corrections at every dip into the discount zone. Following the break of structure below the $0.2750 low, MANAUSD retracted upward as it headed into a premium array.
MANAUSD Significant Zones
Demand Zones: $0.3060, $0.1880
Supply Zones: $0.4350, $0.8430
Before the emergence of the ongoing downtrend, which began in February 2023, the market’s environment was bullish. The current overall downward trend began as the price invalidated the equal lows at $0.6140. This occurred after the distribution of MANAUSD in the form of a ‘head and shoulders’ pattern, marking the end of the uptrend. As the distribution phase came to an end, a bearish order block formed in the last week of February 2023. The bearish order block instigated the continuation of the downward trend on April 18, 2023.
A buy-side liquidity sweep occurred above the old high at $0.6800 before the price reverted downward. A similar incident also occurred on June 5, 2023, and on July 12, 2023, as the price invalidated the $0.5310 and $0.4330 highs, respectively. On July 12, 2023, a buy-side liquidity sweep occurred after a major correction to the upside. This was due to the oversold state of the market, as indicated by the RSI (Relative Strength Index). MANAUSD is again retracing upward after encountering buying pressure from the discount zone. A retracement into the Breaker Block (BB) premium array is likely to occur before the market’s downward trend is resumed.
Market Expectation
On the four-hour chart, the market is currently in a consolidation phase as it fills the liquidity void below $0.3060. MANAUSD seems to be heading upward, according to the MA Cross. However, an invalidation of the weak low at $0.2850 might occur before the final explosive move into the premium zone.
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