The Decenraland (MANA) token wobbling near the apex of the triangle pattern indicates the price is poised for a decisive breakout. While the two converging trendlines currently bolster a highly volatile phase, an imminent breakout will bring a directional rally back to this asset.
While the broader market resumes the recovery phase, the MANA price will likely breach the overhead trendline to resume the prevailing trend.
Source – TradingView
The MANA token entered a new correction phase in December End 2023 after the price topped $0.6065. Thus, the bearish downturn, accelerated by post-ETF sell-off, tumbled the coin price 28% to currently trade at $0.435.
Moreover, the multi-contact support from the $0.4141 demand zone helps avoid any deeper correction for the altcoin. This reflects the significant demand at lower levels for the altcoin that may soon launch an uptrend.
The ongoing correction strictly resonates within the overhead trendline and the bottom support zone, indicating a descending triangle. The development of this pattern indicates the coiled-up momentum will soon explode, and the price is likely to make a decisive move. In case of an upside release, the MANA price will prolong the prevailing rally and breach multiple resistances.
Technical Indicators:
RSI Indicator: The daily RSI slope below 50% reflects the correction trend is still active. However, the rising trend in RSI, despite the constant breaks at the $0.4141 zone, presents a bullish divergence in motion.
Will the MANA Price Rebound?
With an intraday gain of 1.25%, Decentraland teases a bullish breakout from the upper boundary. A successful breakout with a daily candle closes the signal at the end of the correction trend. This will bolster buyers to reclaim higher ground.
The post-breakout rally will surge the MANA price to $0.5, followed by $0.6, accounting for a 37% hike.
On a contrary note, a breakdown below the lower trendline will accelerate the supply pressure and may prolong the correction trend to $0.374.
