MANA Rebounds from Multi-Year Lows: Can Bulls Break Key Resistance and Sustain Momentum?

MANA Shows Signs of Recovery: Can Bulls Sustain Momentum and Reclaim Key Resistance Levels?

Decentraland (MANA) recently tested its multi-year lows around the $0.25 mark following a bearish flag breakout on its daily chart. However, the anticipated breakdown found support at the $0.25 level, allowing MANA to rebound and reclaim the $0.269 support above the 20 EMA. As of the latest update, MANA is trading at $0.275, reflecting a nearly 5.8% increase over the past 24 hours.

Can MANA Bulls Reclaim a Spot Above the 50-Day EMA?

The recent bullish push for MANA followed a retest of the $0.25 support level by sellers last week. This recovery has allowed the altcoin to stay above the 20-day EMA and show early signs of a near-term rebound.

For MANA to continue its upward trajectory, it may face immediate resistance near the 50-day EMA at $0.285 and the $0.28 resistance zone. A successful breach of these levels could pave the way for a potential retest of the $0.31 resistance in the coming weeks.

However, with the broader market sentiment currently in the ‘Fear’ zone, buyers should seek substantial confirmation signals before entering long positions.

Technical Indicators Support Recovery

The recent recovery has been supported by several technical indicators:

1. Relative Strength Index (RSI): The RSI showed a bullish divergence, bouncing from oversold levels and hovering around the neutral 50 mark. A move above this level could confirm a more sustained bullish trend for MANA.

2. Moving Average Convergence Divergence (MACD): The MACD has demonstrated diminishing bearish momentum, with a bullish crossover between the MACD and Signal line. If these lines close above zero, MANA could experience an extended uptrend.

Derivatives Data Reveals Market Sentiment

The long/short ratio stands at 1.0483, indicating a slight bullish bias in the market with more longs than shorts. Specifically, Binance’s MANA/USDT long/short ratio shows a reading of 2.63, highlighting a stronger presence of long positions.

Additionally, liquidation data supports the recent bullish price action. Over the past 1–12 hours, $3.71K in short positions were liquidated, and $5.67K in short positions were liquidated in the last 12-24 hours. This suggests that shorts are being squeezed, further contributing to the upward momentum.

Near-Term Outlook and Key Levels

MANA’s near-term outlook largely depends on whether the bulls can maintain control above the 20-day EMA and successfully break the $0.2854 resistance level. A close above this level could signal a stronger recovery, potentially leading to a retest of the $0.31 resistance zone.

Traders should closely monitor the RSI and MACD for confirmation of a sustained bullish trend. Additionally, given MANA’s strong correlation with Bitcoin, keeping an eye on BTC’s price action could provide valuable insights into MANA’s potential price movements.

Conclusion

MANA’s recent bounce from its multi-year lows and subsequent recovery above key support levels is a positive sign for bulls. If MANA can sustain momentum and break through the immediate resistance levels, it may pave the way for further gains and a potential retest of higher resistance zones. However, traders should remain cautious and seek confirmation from technical indicators and market sentiment before making investment decisions.

Stay tuned for more updates on MANA and other cryptocurrencies as market conditions continue to evolve.

Georgi Minev publication: "MANA Rebounds from Multi-Year Lows: Can Bulls Break Key Resistance and Sustain Momentum?" was written for 24crypto.news

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