Decentraland (MANA) Up 70% Since Jan 24, What Next?

Decentraland (MANA) has broken out of a long-term pattern, potentially signaling that the correction that has been ongoing since November 25th is complete.

Descending Wedge

MANA has fallen into a descending wedge since hitting an all-time high on November 25th.

The move down as low as $1.70 on Jan 22nd. Since then, the tokens have increased.

On January 31, MANA erupted above the descending wedge mentioned above. Despite the breakout, it is still trading 52% below its all-time high.

It is currently sitting inside the horizontal resistance area of ​​$2.85. If the move is successful, the next resistance will come in at $3.81. This is both horizontal resistance and retracement resistance at 0.5 Fib.

Daily MANA/USDT chart | Source: TradingView

Trader @PostyXBT tweeted a MANA chart and said that the token could be rejected from the $2.85 resistance area. Since the tweet, the token has touched this zone and has declined slightly thereafter.

The source: Twitter

Future movement

Despite the fact that the MANA is trading inside the resistance zone, the technical indicators are still bullish.

The MACD, formed by the short-term and long-term moving averages (MA), is moving up and is about to cross the positive zone (green circle). This is a sign that the trend is slowly turning up.

Also, the RSI has just moved above 50. The RSI is a momentum indicator and readings above 50 are considered a sign of an uptrend. More importantly, this last happened in October 2021, ahead of the entire uptrend to all-time highs.

Therefore, an uptrend is still possible after this period that will bring MANA at least into the $3.81 resistance area.

Daily MANA/USDT chart | Source: TradingView

Count waves

As measured from June 2021, MANA appears to have just started the fifth wave of a 5-wave bullish (white) pulse. In this scenario, it completed a pullback that included wave 4 with a January 22nd low.

The first potential target for the top of this move would be $8.38 created by the 1.61 external Fib retracement resistance level. The second target is $11.16, created by the 0.382 length of waves 1-3 (white).

It should also be remembered that MACD-Histogram generated bullish divergence only in May-June 2021 (green line) before the current bullish move.

Daily MANA/USDT chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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