Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
- MANA formed an ascending triangle chart pattern
- A possible upside breakout target could be $0.4740 and the 38.2% Fib level ($0.5054)
Decentralized [MANA], the Metaverse-based project, recorded a bullish Moving Average Convergence Divergence (MACD) crossover on November 25. The cross has opened up buying opportunities for interested MANA investors.
Further gains could occur if MANA manages to register a bullish breakout from its recent ascending triangle pattern. As of December 2, MANA was trading at $0.4107. If bitcoin [BTC] resumes and holds the $17,000 level, a bullish breakout of the ascending triangle could be possible. This could put MANA on an uptrend towards $0.4740 and $0.5054.
At press time, MANA was trading at $0.418602 and trading up 3.5% in the past 24 hours.
MANA Forms an Ascending Triangle: Can Bulls Influence a Bullish Breakout?
MANA was already showing lower lows before the FTX implosion. However, two weeks before the FTX saga, MANA rallied, hitting a high of $0.7452. The post-market dip took it through several support levels.
The bulls found a rest zone at $0.2572, from which a successful rally was launched on November 22. Since the start of the recent rally, MANA’s price movement has formed an ascending triangle – a typical bullish chart pattern.
Additionally, the price formed a bullish MACD crossover, which was a buy signal for an early uptrend. Therefore, MANA is likely to target $0.4740 and $0.5054 in the event of an upside breakout.
In particular, the Relative Strength Index (RSI) also broke out of oversold territory and saw a steady increase. It showed that sellers had less and less influence and buying opportunities were increasing.
The equilibrium volume (OBV) also increased slightly after being relatively stable for about two weeks. This indicated that buying momentum increased as trading volume increased. This could increase buying pressure and help bulls break out of the ascending triangle within days or weeks.
However, an intraday close below the current support at $0.3572 would negate the bullish bias described above.
MANA has seen steady network growth, but…
Decentraland saw a slight increase in network growth over the last few days of November. This happened after a significant spike in network growth in mid-November.
Interestingly, MANA’s network growth bottomed out in the third quarter, which coincided with a drop in prices. The recent acceleration in growth could therefore contribute to a recovery in prices.
Unfortunately, another obstacle decided to impact the growth of MANA. The weighted overall sentiment was negative at the time of publication. However, it was important to note that sentiment has recovered slightly from negative territory at press time.
This could indicate that the sentiment was improving, although there was still a long way to go. Thus, investors should keep an eye on BTC and MANA sentiment.