MANA coin price is under extreme buying pressure resulting in the breakout of the $3.5 mark. Will it reach the $5 mark shortly?
MANA and Land are the tokens used by Decentraland. MANA is an HTML20 token, which must be burned to obtain non-fungible ERC-721 ERC-721 tokens. MANA tokens are also used to purchase avatars, wearables, and other items on the Decentraland Marketplace.
Let us now learn about the technical analysis of MANA.
Past Performance of MANA
After more than 200 percent growth within days, the MANA coin price started to form a cup and handle pattern with the neckline near the $3.5 mark. However, the recent jump in the buying pressure brings the bullish breakout of the price pattern.
In the last 24 hours, the coin price has gained 9.05 percent, with a rise of 130 percent in intraday trading volume. The jump in trading volume is evidence of the increased buying pressure.
MANA Technical Analysis
The retracement in the 4-hour chart showcases the price retesting the bullish breakout of the cup and handle pattern. Hence, traders can find a buying opportunity in coin at the retest with minimum risk.
The bullish reversal from the $3.5 mark or higher can face resistance near the $4.6 and $5.5 Pivot Points. If the prices break below the support zone, the support levels at $3 and $2.33 can help reverse the downfall.
The RSI indicator projects the rising uptrend approaching the overbought zone in the 4-hour chart. The recent rejection from 72 percent puts the slope back at 62 percent. Hence, the RSI forecasts a dip before a bull run in MANA coin prices.
The DMI indicator indicates that the positive DMI is higher than the negative DMI. This suggests that there is an active uptrend. The ADX slope increases at 48 percent, which indicates an uptrend that is gradual and not as abrupt.
The MACD indicator projects the fast and slow lines rising above the zero mark. The positive alignment of the lines brings buying opportunities. Hence, the MACD indicator sides with the bulls.
Upcoming Trend
The bullish breakout of the $3.5 mark brings more MANA token buyers into the play. Hence, a bull run to the $5 mark is possible in the upcoming days.
However, the resistance levels at $4 and $4.6 can result in a minor setback. And in case the retest fails, the support levels are at $3 and $2.5, which may put the uptrend back in action.
