Oversold RSI Could push Decentraland (MANA) up significantly in the near term

Oversold RSI Could push Decentraland (MANA) up significantly in the near term

The past 7 days have been mixed for Decentraland (MANA). After the initial drop, the coin has started to gain some upward momentum, although it has not been as much. But the RSI reading suggests a potential bull run is possible. Here are the main facts:

RSI readings show that MANA is now oversold, indicating that the risk of a sharp sell-off is low.

With limited downside risks, MANA is likely to rebound steadily in the near term.

In this bullish scenario, the coin could surge by 50%.


Data source: Tradingview

How can MANA break $3?

The recent uptick in bullish momentum hasn’t been that big. But it was enough to move MANA above a key support area around $2. The bulls have done a good job keeping the price action above this. As the price consolidates, we expect it to push further towards the overhead resistance at $2.3.

The Relative Strength Index, or RSI, seems to suggest this is actually more likely. You see, the RSI reading has moved towards oversold territory in recent days. This basically shows that, as far as MANA is concerned, the risk of any major sell-off is very low.

As a result, the only way to go is upward. If MANA does manage to break above the overhead resistance at $2.3, it will only be a matter of time before it reaches $3. The biggest challenge, however, is sustaining price action above $3.

How can investors profit from this bullish setup?

There are two ways to profit from this MANA bullish setup. First, you can buy above the $2 support. When the coin tests $2.3, you can either exit or bet to $3. Either way, running to $2.3 will still earn you 15%.

Second, you can wait for the coin to break above the overhead resistance at $2.3. After that, MANA could surge to $3, a gain of around 25%.

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