Decentraland’s MANA/USD Holds Steady at Key Level. Time to Buy?
Eric Nkando • 2 min read
Cryptocurrencies have not started 2022 on a strong footing. The leading cryptocurrency, Bitcoin, was down to below $42,000 at the time of writing, while Ethereum was trading at slightly above $3,200. Other cryptos are flashing bearish signs, and this comes after the US Federal Reserve said it would hike interest rates earlier than planned.
Nonetheless, Decentraland’s native token, MANA/USD, is showing strength amid the bearish sentiment. Even as other cryptocurrencies plunged, MANA/USD held at a key level of around $3.0. At the time of writing, MANA/USD was trading at $3.16, slightly above the support zone. It should be noted that the metaverse token had held above this key level since mid-November, when most tokens experienced weakness. This was also a gain of more than 11% in just seven days.
Decentraland Having a Busy Holiday
It is easy to see why Decentraland’s MANA has held its strength, despite the weaknesses in the crypto industry in the last few days. Despite a lot of quietness in the industry, metaverse tokens were having a busy season. Decentraland hosted numerous events during the festive season, including virtual snowball fights, which continue to show the relevance of the platform in the booming metaverse space.
On January 6, the token got another boost, after Samsung announced the launch of its first flagship store in Decentraland. The announcement caused a spike of more than 10% in the price of MANA/USD the same day.
Technical Analysis – MANA/USD Forming a Double Bottom
Looking at the daily chart, MANA/USD is retesting the support at $3.0, resulting in a double bottom, after having retested it in mid-December. Both the 14-day moving average (red) and 9-day moving average (blue) are at the current price, offering no support or resistance. MANA/USD is currently in consolidation mode on the daily chart. It has also filled a wick on a bullish price signal that formed in early December, but the token has yet to close below it. With the price holding steady at $3.0, MANA/USD aims at a potential uptrend, boosted by the developments happening on Decentraland.
MANA/USD Weekly Chart – Bullish Pin Bar Forming at $3.0 Support
A look at the weekly chart gives a broader view of why MANA/USD could turn bullish in the next few days. A long bullish pin bar can be seen towering above the support of $3.0. The pin bar has yet to form fully, and keeping watch on its close could offer clues on a potential upside in the next few days. The 20 moving averages also offer support, which gives an additional clue that MANA/USD could go higher.
MANA/USD – Final Thoughts
MANA/USD presents a buying opportunity at the current level. However, the current consolidation could continue in the next few days, given the weak sentiment in the broader cryptocurrency industry. This could also allow the lower period moving averages to join the support and push the price higher. Besides that, I would also watch for the close of the bullish candlestick on the weekly chart. A price close above $3.0, resulting in a bullish pin bar, is likely to take the price higher. I would also watch the overall crypto sentiment, as this could add impetus to MANA/USD, in line with the bullish prediction. Good luck!