The Decentraland (MANA) price has broken out from and validated a long-term descending resistance line.
The long-term trend seems to be bullish. The rate of increase is expected to accelerate once it breaks out from the short-term $0.115 resistance area.
Breakout and retest
MANA had been following a descending resistance line since Aug. 2020. After four unsuccessful attempts, it finally broke out on Jan.7.
Afterwards, it returned and validated this line as support, along with the $0.10 area, which previously acted as resistance but has now turned to support.
Technical indicators in the daily time-frame are bullish, supporting the continuation of the upward movement.
The wave count suggests that MANA is in wave 3 of a bullish impulse (shown in white below) which began in March.
A possible target for the top of wave 3 is found at $0.254, while that for the top of the entire impulse is at $0.328.
Future movement for MANA
The shorter-term two-hour chart shows that it is unsuccessfully attempting to move above the $0.115 resistance area.
However, it is currently making its fourth attempt at breaking out and has created numerous higher lows, a sign that a breakout is expected. Furthermore, technical indicators are bullish.
A breakout would likely take it towards the $0.145 highs and possibly higher.
Cryptocurrency trader @DCLBlogger outlined a MANA/BTC chart which shows a 65% increase, leading to a high of 388 satoshis.
Since the tweet, MANA has fallen considerably, currently trading at 283 satoshis.
Despite this, it is still trading above the 260 satoshi support area, and is following an ascending support line. This could be part of a symmetrical triangle.
While technical indicators are neutral, the short-term trend is considered bullish as long as it is trading above these two support levels.
Nevertheless, the weekly chart is clearly bearish. It shows a breakdown from an ascending support line and a significant downward movement afterwards.
Until the token manages to reclaim the 400 satoshi resistance area, the long-term trend remains bearish.
To conclude, the MANA/USD trend seems to be bullish and the rate of increase is likely to accelerate once it clears $0.115.
While short-term increases could occur for MANA/BTC, the long-term trend is clearly bearish.
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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of News.