Decentraland (MANA) Breaks out From 208-Day Resistance Line, Targets $2.65 as Next Resistance

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Decentraland (MANA) Breaks out From 208-Day Resistance Line, Targets $2.65 as Next Resistance
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Decentraland (MANA) made a higher low relative to the May 12 bottom before breaking out of a short-term pattern.

Since reaching an all-time high of $5.90 in November 2021, MANA has been breaking below the descending resistance line. More recently, the line was rejected in March 2022, leading to a low of $0.62 on May 12. That equates to an 89% drop from its all-time high.

Since June 21, the price has been rising and breaking above the resistance line. Before the breakout, the line had been in place for 208 days. If the advance continues, the next nearest resistance area will be between $2.65 and $3.25. This is the 0.382-0.5 Fib Retracement resistance area.

short-term breakout

Crypto investor and trader @Cryptojobs3 tweeted a MANA chart saying that the price has broken above the descending resistance line and could rise to $1.

bybit

The six-hour chart shows that the price has broken out of the falling wedge. A falling wedge is considered a bullish pattern, which means a breakout is most likely.

Additionally, a breakout occurred after the RSI produced a bullish divergence, further adding to its legitimacy.

If the advance continues, the first area of ​​minor resistance lies at $1.05.

MANA wavenumber analysis

The wave counts suggest that the price may have completed an ABC corrective structure from the all-time high.

Although the wavelet count is not known, the ratio of waves A:C is 1:0.618, supporting the possibility that this is the correct count.

Furthermore, the uptrend since May 12 does look like a five-wave structure. The fact that prices made higher lows further supports this possibility.

So, while it’s uncertain whether the pump is a full bullish reversal or just a corrective rally, at least an increase of the same ratio can be expected.

If this happens, it will lead to a high of $1.45.

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