Cryptocurrency Decentraland (MANA) investors are in an exciting period. After a long period of price consolidation, it appears that MANA is heading towards a breakout point. If this breakout is successful, double-digit gains could become possible for MANA holders. So, at this stage, which levels are becoming critical for MANA investors? Let’s look at the details together.
Critical Formation Developed in MANA Price
The MANA price has been consolidating below the $0.788 resistance level for a long time and is now approaching key levels. During approximately two years of consolidation, MANA has formed the Adam and Eve formation, which has caught the attention of technical analysts.
The Adam and Eve formation includes a sharp V-shaped recovery and a more rounded second bottom formation. This formation predicts that breaking the $0.788 neckline could lead to a 64% increase, potentially reaching up to $1.29.
MANA Price Shows Notable Compression
Considering that indicators like the RSI have reached the overbought zone recently, retesting the average 50 level could increase the likelihood of a breakout. However, before this happens, it should be noted that the MANA price is likely to remain compressed between $0.788 and $0.542.
In the long term, the upward trend for the MANA price seems to be maintained. However, short-term selling pressure could trigger corrections. Such a correction could create a lower low if it falls below the $0.542 level and invalidate the uptrend.
Investors Should Be Wary of Panic Selling
For many investors, such uncertainties can lead to panic selling and price fluctuations. In this case, it is possible for MANA to retest the low of $0.423 on January 29th, experiencing a 22% drop.
Given all this, the cryptocurrency Decentraland (MANA) price is becoming an area to be closely monitored by both short and long-term investors as it approaches the breakout point. Looking at the price of the cryptocurrency MANA while writing this article, we see that the price is at $0.66. It seems like there is a challenging journey ahead for MANA to reach the $1 price tag. If the price passes the tough $1 stage, MANA’s journey towards its old peak levels of $5.8 could begin.
