Decentraland price sees price action underpinned at the 200-day SMA.
MANA to materialize a breakout trade as the short-term trend line is set to be broken.
Expect a bullish start of the week with MANA projected around $0.66.
Decentraland (MANA) price is currently on the backfoot slightly as the ASIA PAC session started off with a bullish undertone. Nothing surprising just yet as MANA is currently residing at the 200-day Simple Moving Average (SMA), which has been providing support on plenty of previous occasions. With the bullish undertone being handed over in the European trading session, expect to see a breakout trade that could see MANA shooting higher to $0.66 by Tuesday or Wednesday if this undertone persists.
Decentraland price has bulls gearing up for a 13% upswing
Decentraland price had been in steep decline ever since bulls tried to break above the 55-day SMA two weekends ago after Credit Suisse got pushed into a merger. In a bearish triangle formation with the 200-day SMA as the base, plenty of attacks have been launched – each unsuccessful. Seeing the bullish tone this morning in global markets with equities and risk assets on the front foot, expect to see that filter through MANA price action with a bit of delay.
MANA thus does not complete the bearish triangle and rather goes the other way. Once the orange ascending trend line is broken again, expect this time to see some follow-through. By Tuesday or Wednesday, the rally could extend toward $0.66 and meet the 55-day SMA as the price cap for this week.
The bearish triangle could well be fulfilling its destiny and first needs to tread below the 200-day SMA in order to find enough buyers who will push price action back up. The best candidate for that is at the monthly S1 support level near $0.55. That means still another 5% loss to be added.
