Can This New Bullish Pattern Prolong Price Recovery In MANA?

Following a brief break earlier week, the bullish momentum continues of the majority of major cryptocurrencies. As a result, the MANA coin price rose 20% in the last three days and reached the current price of $0.742. This price jump also breached the $0.732 neckline resistance of the cup and handle pattern. Here’s how this bullish pattern may affect the near-term future of the Decentraland token.

Key points:

• The $0.732 breakout sets MANA price for a 53% jump
• The recently reclaimed 200-day EMA could assist buyers in leading the further recovery.
• The 24-hour trading volume in the Decentraland token is $319 Million, indicating a 14% fall. 

Source-Tradingview

Concerning a minor correction in the MANA price earlier this week, the daily time frame chart showed the formation of a cup and handle pattern. This is one of the famous bullish reversal patterns commonly observed in the market bottom.

In theory, this pattern formation consists of a U-shaped recovery which indicates a steady directional uptrend, and a minor correction which confirms the price sustainability above the higher price. Thus, the short pullback observed in the MANA price must have stabilized the excess buying and prepared the token for a future rally.

By press time, the MANA price showed a 1.7% intraday jump which breached the $0.732 neckline resistance of the cup and handle pattern. If the daily candle closes above the neckline, resistance and buyers will obtain a significant footing to lead further growth.

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Thus, in an ideal bullish condition, this pattern breakout should drive the MANA price 53% higher to hit $1.12. However, this bull run could face in-between resistances at $0.823 and $0.935.

Furthermore, the bullish thesis will weaken if the price cannot sustain above the $0.732 mark.

Technical indicator

Relative Strenght index: the daily RSI slope wavering in the overbought region indicates the buying is aggressive for spent time, and the MANA price could need a minor correction before resuming the prevailing rally.

EMAs: in case of possible pullback, the reclaimed EMAs(20, 50, 100, and 200) could act as valid support levels. 

MANA Coin Price Intraday Levels

• Spot price: $0.739
• Trend: Bullish
• Volatility: High
• Resistance level- $0.823 and $0.935
• Support level- $0.732 and $0.61