Decentraland (MANAUSD) Signals a Bearish Breakout
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Market Analysis: Bearish Breakout From a Consolidating Trend
In recent price action, MANAUSD is characterized by the converging of lower highs and higher lows, which reflects price in a period of consolidation. The consolidation resulted in the formation of a symmetrical triangle pattern, with the market breaking out to indicate a bearish bias.
MANAUSD Key Levels
Demand Levels: $0.4480, $0.3200
Supply Levels: $0.7030, $0.8130
MANAUSD reached a new major high in mid-March 2024, surpassing the $0.7030 supply level, suggesting an initial bullish trend. However, the price formed a symmetrical triangle pattern, indicating a decrease in bullish volatility. The price subsequently broke below the triangle, signaling a bearish reversal in the current price action.
The bearish breakout resulted in a significant decline after breaking through the $0.4480 demand level, clearing the liquidity below and leaving no room for any potential retracement. The sharp drop in price led to the formation of a Fair Value Gap (FVG) in the 4-hour timeframe. The daily Relative Strength Index shows that the price is well below the 30.0 overbought region, indicating a potential for a pullback that is expected to fill the open Fair Value Gap.
Market Expectation
Bearish momentum is expected to continue after a price retracement to the Fair Value Gap, with the market anticipated to drop further below $0.3200.
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