According to the trend of the cryptocurrency market, the MANA token, which powers the Decentraland network, has been on the rise since the beginning of 2023. Moreover, this recovery is supported by the increasing volume of activity, i.e. the ongoing recovery in the fundamentals.
By the time this article was finished, the price of MANA was at $0.4458, up 53.5% over the past five days. According to the chart, the move has a U-shape, which means a very strong rebound.
This move showed the formation of a round bottom pattern on the daily chart, providing further growth for currency holders. With this, MANA can estimate more and complete a 20% appreciation transaction. See how this can happen.
MANA Analysis Highlights U-shaped Recovery Source: TradingView.
In technical analysis, the rounded bottom pattern is one of the most common bullish reversal patterns on market bottoms. The formation of the pattern reflects the trend reversal, such as the previous low change in the recovery high.
Since the prevailing trend so far is downward, this pattern will indicate a reversal to the upside. And that’s exactly what happened to MANA, which rose in value five times more than Bitcoin (BTC).
During this rally, MANA price broke several resistances, which provided higher basis for buyers to be optimistic. On Friday (13th) alone, the price of the cryptocurrency posted a solid 13% increase, which is the fourth highest estimate in the top 100.
As such, MANA formed a bullish candle on the daily chart and showed a decisive break of the resistance at $0.428 threshold. This made the cryptocurrency jump to the $0.45 area and thus overcame another resistance.
what are you expecting?
Now, MANA price created a strong candle on the daily chart. The next moves will depend specifically on this candle. If the price closes above the above resistance, the underlying bullish momentum will intensify.
As it ramps up, MANA should look for the next graphic resistance, which is now in the $0.534 area. That is, the price that corresponds to a 20% increase in relation to current prices.
On the other hand, if the coin price drops below the $0.428 mark, the bullish theory will be invalidated. In this case, MANA should drop to the next support at $0.38, which is a potential decline of 11.2% from the current price.