Decentraland’s MANA / USD remains stable at a key level. Is it time to buy?
Cryptocurrencies did not start 2022 on a solid footing. The main cryptocurrency, Bitcoin, was below $ 42,000 at the time of writing, while Ethereum was trading slightly above $ 3,200. Other cryptos are showing signs of bearishness, and it comes after the US Federal Reserve announced it would raise interest rates earlier than expected.
Nevertheless, Decentraland the native token, MANA / USD, is showing strength amid the bearish sentiment. Even when other cryptocurrencies plunged, MANA / USD held steady at a key level of around $ 3.0. At the time of writing, MANA / USD was trading at $ 3.16, slightly above the support area. It should be noted that the Metaverse token had held above this key level since mid-November, when most tokens experienced weakness. This is also a gain of over 11% in just seven days.
Decentraland has a busy vacation
It’s easy to see why Decentraland’s MANA has retained its strength, despite weaknesses in the crypto industry in recent days. Despite much calm in the industry, Metaverse tokens have had a busy season. Decentraland has hosted many events during the holiday season, including virtual snowball fights, which continue to show off the platform’s relevance in the burgeoning metaverse space.
On January 6, the token received another boost, after Samsung announcement the launch of its first flagship store in Decentraland. The announcement caused the MANA / USD price to spike more than 10% on the same day.
Technical analysis – MANA / USD Form a double bottom
Looking at the daily chart, MANA / USD is testing the support at $ 3.0 again, resulting in a double dip, after retesting it in mid-December. The 14-day moving average (red) and the 9-day moving average (blue) are both at the current price, offering no support or resistance. MANA / USD is currently in consolidation mode on the daily chart. It also filled a wick on a bullish price signal that formed in early December, but the token has yet to close below. With a stable price at $ 3.0, MANA / USD is targeting a potential uptrend, boosted by ongoing developments on Decentraland.
MANA / USD Weekly Chart – Bullish Pinbar Formation at $ 3.0
A glance at the weekly chart gives a broader view of why MANA / USD could turn bullish in the coming days. A long bullish pinbar can be seen above the $ 3.0 support. The pin bar has yet to be fully formed, and monitoring its closure could offer clues to a potential rise in the coming days. The 20 moving averages also offer support, giving further clue that MANA / USD may rise.
MANA / USD – Final thoughts
MANA / USD presents a buying opportunity at the current level. However, the current consolidation could continue over the next few days, given the weak sentiment across the cryptocurrency industry. It could also allow the lower period moving averages to join the support and push the price up. On top of that, I would also be watching the close of the bullish candlestick on the weekly chart. A price close above $ 3.0, resulting in a bullish pinbar, is likely to push the price up. I would also monitor the overall crypto sentiment as this could give MANA / USD some momentum as per the bullish prediction. Good luck!