Analytical firm Santiment said in its new analysis that a metaverse coin project that has been on its radar for a while may be on the rise again.
The recession is about to end, according to Santiment
Decentraland (MANA), the subject of Santiment’s current analysis, is showing bullish signs on its weekly time frame. However, on the daily chart, the situation is still more bearish before a reversal. MANA has been falling within a parallel descending channel since reaching $5.91 at its May 2021 peak. The current drop brought the price as low as $0.62 in May 2022.
MANA technical analysis
At first, it looked like the support line of the channel was broken due to the downward move. Shortly after, however, the MANA price changed direction, producing a very long lower wick (green icon). Such channels often result in corrective actions. Therefore, crypto analyst Valdrin Tahiri expects a breakout at some point as the most likely outcome. This possibility is further strengthened by the fact that Decentraland price is currently trading in the upper half of the channel and the weekly RSI is bullish (green line).
Santiment expects an imminent burst in metaverse coin price
Santiment analysts say that while similarly bearish in the short-term, some metrics point to a boom in the long-term. The analytics firm shared that MANA was at the lowest levels of the last 3 years on a profit/loss ratio basis. This usually results in the above direction. A similar situation ended with a gain of over 610% after a 6-week decline earlier.
On the other hand, despite these bullish readings, it fell below the critical horizontal zone of $0.75, which had previously acted as support since August 2021. Additionally, the RSI broke the bullish trend line on the daily timeframe. This indicates that Decentraland price will continue to move downward towards the next current support level of $0.49. Therefore, weekly and daily time-based reviews suggest that MANA price could drop to $0.49 before a final breakout.
