Following the August second-half sell-off, the MANA/USDT pair slumped to the June-July bottom support of $0.75. The downfall registered a loss of nearly 32.5%. Furthermore, on August 29th, the coin price rebounded from this support with a bullish engulfing candle indicating the traders are actively buying at this level.
Key points:
- The recent correction phase entirely evaporated the June-July recovery gains
- The MANA price forms a rounding bottom pattern in the four-hour time frame chart.
- The 24-hour trading volume in the Decentraland token is $128.8 Million, indicating a 60.6% rise.
Since last week, the MANA price has walked a lateral path, trying to sustain above the $0.75 support. Thus, on September 4th, the meta coin gave a bullish breakout from the range resistance of $0.8, suggesting the buyers are making a recovery attempt.
MANA Chart Hints Formation Of Rounding Bottom Pattern
The four-hour time frame chart accentuates the range breakout with $0.8 resistance. The MANA price is currently wobbling in the retest phase offering an entry opportunity for interest traders. However, the higher price rejection attached to the retest candle reflects a slight weakness in bullish commitment.
If the MANA price sustains above the $0.8 mark, the potential rally could surge 6.8% higher to hit $0.86. Moreover, the bull run will bolster the formation of a rounding bottom pattern. This bullish pattern will further encourage further recovery and breach the $0.86 mark.
On a contrary note, If the MANA buyers couldn’t hold above the $0.8 mark and close a candle, closing below the flipped support will signal a fake breakout. As a result, the price could tumble back to $0.75 support.
Technical indicator
RSI indicator(4-hour): the RSI slope showed an evident bullish divergence during the range-bound rally, and a surge above the midline indicates growth in bullish momentum.
EMAs: the 20 and 50 EMAs are on the verge of bullish crossover at the $0.793 mark. This crossover could encourage the breakout rally to hit $0.856, and the long traders can put their stop loss just below these EMAs.
- Resistance levels: $0.86 and $0.89
- Support levels: $0.8 and $0.753
