In the year 2023, Decentraland did very well. In February and March, the price charts for its native token took a sharp turn down.
The support level at $0.623 was broken on March 3, but the gains over the past week show that the same level is now acting as support again.
At the time this was written, MANA pointed to a likely move toward $0.7. Even though Bitcoin’s daily market structure was bearish, bulls still had a chance if the price didn’t drop too quickly.
Bulls could expect more gains after the 61.8% retracement
Early in 2023, the price went from $0.29 to $0.84 at the start of February, which was an increase of nearly 195% in less than six weeks. Since August of last year, things have been going down in Decentraland. This made the structure go from bearish to bullish.
The Fibonacci retracement levels showed that the 61.8%-78.6% golden pocket was still acting as support, even after the recent deep retracement. So, there was a chance that MANA would keep going up like it had been since the beginning of the year.
The Awesome Oscillator indicated bearish momentum, but the green bars on the histogram indicated that bearishness was weakening. In the meantime, the OBV was also in a downward trend and had not broken through the lower high. This was consistent with the market’s bearish structure.
On the daily chart, the white-highlighted fair value gap and the red bullish breaker at $0.6 were both in the same place. If the price dropped into this area, it was likely that it would move toward the $0.71 bearish order block.
Since February, the 30-day MVRV ratio has kept going lower and lower. This showed that there had been recent pressure to sell the asset.
On the other hand, after 90 days, the average age of coins has been getting older. This meant that prices went up all over the market. Also, there were no changes in the exchange flow balance that were very big.
The last drop happened in mid-February, when 229.3 million MANA were moved to exchanges and there was a lot of pressure to sell.
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