MANA Regains Critical Support at $0.26, But That Alone Might Not Do It!
MANA recently retested multi-year lows near $0.25 after charting a bearish flag breakout on the daily chart. However, the expected breakout found a bounce at the $0.25 level. This allowed MANA to rebound and recapture support above the 20 EMA at $0.269. At press time, MANA is trading at $0.275, up nearly 5.8% in the past 24 hours.
Can MANA bulls recapture the position above the 50-day EMA?
The latest bullish momentum came after sellers retested the $0.25 support level last week. As a result, the altcoin remains above the 20-day EMA and is showing early signs of a near-term recovery.
A sustained uptrend from now on is likely to face immediate resistance near the 50-day SMA at $0.285 and the $0.28 resistance zone. If the bulls break above these levels, a retest of the $0.31 resistance is likely in the coming weeks.
However, given that the overall sentiment remains in the “fear” zone, buyers should look for substantial signals before initiating long positions.
Notably, the recent rally is further supported by a bullish divergence in the Relative Strength Index (RSI). The RSI rebounded from oversold levels and, at press time, hovered around the neutral 50. A break above this level could confirm a more durable bullish trend.
The MACD shows weakening bearish momentum with a bullish crossover between the MACD and the signal line. If these lines close above zero, the altcoin could be in for an extended uptrend.
Derivatives data shows
The long-short ratio is 1.0483. The market is slightly bullish, with more longs than shorts, especially on Binance’s MANA/USDT, which has a long-short ratio of 2.63.
On the other hand, liquidation data shows that shorts are being squeezed, with short liquidations of $37,100 in the past 1-12 hours and $56,700 in the past 12-24 hours. These data further support the recent bullish price action.
The short-term outlook for MANA largely depends on whether the bulls can maintain control over the 20-day EMA and break out of the $0.2854 resistance. A close above this level will open the doors for a retest of the $0.31 resistance area and consolidate the recovery. Traders should also keep a close eye on the RSI and MACD for confirmation of a sustained bullish bias.
As always, keeping an eye on Bitcoin’s price action can provide important insights. Especially since MANA has a strong correlation with BTC.
In simple terms
MANA has continued its long-term downward trend, but has recently recovered several key support levels. The derivatives data of altcoins suggests a bullish advantage, while the overall market sentiment remains uncertain. Currently, technical indicators support its bullish outlook, but there is no major hype information sentiment affecting prices. It is expected that it will go through a period of consolidation. The FOMC meeting is expected to hold and the interest rate cut will affect price increases. In the long run, with the interest rate cut and the large-scale release of money, it is expected that the increase in liquidity will support further price increases.
