- MANA’s critical resistance zones at $0.72 & $0.82.
- A bearish block restricted bullish efforts amid the latest bounce.
Decentraland (MANA) boasted a $1.12 billion market capitalization during this publication, though this number might drop in the upcoming weeks. The Metaverse token has sustained massive bearishness since August.
Meanwhile, MANA’s failure to sustain the $0.75 mark triggered another market selling wave. Losing the foothold at $0.6 would welcome another similar case. Decentraland formed a bearish divergence on its price charts around the crucial FIB retracement.
This scenario, plus the absence of demand over the past few weeks, suggested that MANA could endure another decline on the charts.
Another Selling Wave Impending
Analysts drew FIB retracement regions based on the decline to $0.584 from $0.755. It placed the 38.2% retracement area at $0.65. This zone served as massive resistance within the previous two weeks. Moreover, a bearish block emerged at this crucial level.
Meanwhile, it represents an area where traders might execute MANA short positions, aiming a move toward $0.584 or lower – the 23.6% extension mark at $0.544. The Accumulation/Distribution printed several lower peaks since mid-September, showing dominant selling pressure.
The 12hr Relative Strength Index has stayed below the 50-neutral for about two months, confirming steady declines. Also, the market crash remained bearish, though the latest closing beyond $0.618 shifted the market structure bias.
Meanwhile, a bullish divergence emerged after the alt rebounded to $0.625 from $0.59. that welcomed a concealed bearish divergence, suggesting that the previous declines could continue.
MVRV at Long-Term Lows, Without Bottom Indication
The 365-day Market Value-Realized Value Ration touched the -60.5% low in January 2019. The ratio plummeted towards the -71.8% lows as the price declined to $0.7 in May. Meanwhile, the index hovered at 71.15% during this publication. That meant most token holders held at a loss.
Also, social dominance declined from its highs, though the metric climbed towards the 0.7% high within the past few weeks. However, that doesn’t imply that the price hit a long-term bottom. It might dip further, and technical analysis indicated another move below $0.6 might emerge in the upcoming weeks.