Decentraland (MANA) fell below the $0.8254 – $0.6314 consolidation range at the start of March and suffered an aggressive sell-off. At the time of writing, the virtual reality blockchain platform’s token is struggling to maintain its half-dollar value. Likewise, Bitcoin (BTC) appears to remain amidst general market uncertainty.
Continued decline or recovery?
MANA has formed a flag, but a potential bullish rally may be stalled by increased market uncertainty. After the bears breached the $0.6314 support on March 3, the bulls lost significant leverage.
Subsequent aggressive selling pushed MANA below another key support at $0.5326. At the time of writing, MANA is trading between $0.5422 and $0.4986, the 100-day moving average (MA).
If BTC continues to fluctuate, MANA may enter a sideways market structure. Therefore, traders can target the upper and lower bounds of the $0.5422 – $0.4986 range for gains. Exiting the range may invalidate the horizontal structure above. Notably, a downside break could close at $0.4600 or $0.4200.
On the other hand, a bullish breakout and daily candlestick close above $0.5326 could trigger a rally with a target at $0.6314. The RSI fell sharply, while the OBV (On Balance Volume) also fell, indicating buying pressure and limited volume.
Weekly Active Address Increase
According to Santiment, the crypto’s 90-day average age is steadily increasing, which could indicate a possible bullish rally. Likewise, the increase in weekly active addresses over the past few days may increase the transaction volume needed for a recovery.
However, the weighted sentiment remains in negative territory, indicating that investor confidence in the asset has waned. Additionally, uncertainty surrounding BTC could delay a strong recovery. Therefore, investors should keep an eye on Bitcoin’s price action before taking action.
Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Alican Ülker, without permission, may not be reproduced