Decentraland (MANA/USD) Faces Renewed Downtrend After Bullish Exhaustion
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Price Analysis: MANA/USD Faces a Bearish Outlook After Failing to Sustain Bullish Momentum at $0.7490
MANA/USD has entered a substantial decline following the conclusion of its major bullish phase. The first bullish wave began in early March 2024, pushing the price to a high of $0.7490. However, after reaching this peak, the asset experienced a prolonged downtrend, gradually retracing its gains.
MANAUSD Key Levels
Demand Levels: $0.3640, $0.2630
Supply Levels: $0.4630, $0.5740
A second bullish wave emerged as the price declined to the $0.2630 demand level, driving MANA/USD back toward the $0.7490 resistance. This slightly breached the level but ultimately held, leading to another bearish reversal. The renewed downtrend saw the price break through key support at $0.3640, with further losses anticipated.
A notable development in price structure is the formation of a head-and-shoulders pattern, a classic technical indicator suggesting further bearish momentum. The 4-hour timeframe confirms this sentiment, as a bearish break of structure has occurred below the $0.2630 level.
However, in the short term, price action is experiencing a temporary bullish rebound, with the four-hour Relative Strength Index (RSI) indicating increasing strength. This upward movement is approaching a key Fair Value Gap (FVG) zone, and the four-hour RSI is nearing overbought conditions, suggesting a potential short-term reversal.
Market Expectation
Market ExpectationOverall, the prevailing outlook for MANA/USD remains bearish, with expectations of a further decline below $0.2630. However, it is advised to exercise caution, as the daily RSI is also signalling increasing price strength. This suggests the possibility of a more significant bullish retracement before the broader downtrend resumes. Monitoring key resistance levels and RSI behaviour will be critical in determining the next move for MANA/USD.
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