Decentraland (MANA) may have looked bullish over the past few days as buyers held the price above the 200 DMA as seen on the hourly chart. Regardless, the coin is still trading in a sideways horizontal range with support at $0.75 and resistance at $1.0.
With the upgrade on the hourly chart, trading volume has also surged by 290% in the past few hours. Buyers saw a sell-off-induced decline in MANA as it fell to a 90-day low of $0.772 in May 2022.
While the past few days have seen a convergence in a sideways range, speculators have seen the formation of a rounded bottom pattern on the daily chart. Having said that, the buying of the coin has intensified, which has prompted the price action to form higher highs.
MANA price is currently trading at $1.02; down 2.36%
According to CoinMarketCap, MANA price is currently at $1.02 or down 2.36%. Despite the bullishness, the market cap has remained neutral at around $2 billion over the past 24 hours. As MANA rose, speculators also saw a 290% increase in volume over the past 24 hours, but the MANA/BTC pair was still down 1.4%.
The price of MANA is likely to rise as buyers maintain the momentum and the price moves up or above the 200-day SMA shown on the hourly chart. On the daily chart, the 20-day EMA remains a pumping area for many buyers, as bears cannot intervene as long as they hold on to the support line.
MANA is overbought and needs to attract new buyers
The RSI also continued to hover and broke the bullish barrier above the half line, moving towards the overbought zone. More importantly, the MACD indicator is also pointing to an uptrend on the daily time frame. MANA is moving towards the resistance zone. Therefore, even if the coin is considered very bullish, a rally above the $1.5 resistance line is always possible.
After some bittersweet uncertainty, the coin is now surging to highs with some disruption from the bear market. Apparently, Bitcoin’s price surge greatly contributed to MANA’s uptrend as the king of cryptocurrencies, and it is now trading above the 23k mark, supporting and propelling the coin.
The speed of recovery shown by MANA may not be enough to boost investor confidence, and the token may need to attract more new buyers to ensure a full and sustained recovery.
MANA total market cap at $1.9 billion on the daily chart | Source: TradingView.com