Decentraland (MANA) Price Prediction for 2022 - Technical Analysis

Decentraland (MANA) Price Prediction for 2022 - Technical Analysis

6 Minuten
7 months ago

Offering a return of about 4,800% to its investors this year, check out if you should still invest in MANA or go for AXS instead.

Decentraland (MANA) Price Prediction for 2022 - Technical Analysis


Barry Silbert’s support for Decentraland (MANA) has absolutely skyrocketed the token’s price in recent months. Since its bottom in July, buyers have pumped the price up more than 1,400%, with a yearly return currently equating to around 4,800%. MANA brings a metaverse where players can buy accessories for their character and buy real estate, among other features. The most important thing, however, is that the project has more than 385,000 followers on Twitter which makes it clear that people are quite interested in the project itself. Moreover, partnerships with projects, like Sotheby’s and Opensea, have also helped to garner even more interest in the game. When it comes to the price of MANA, the chart looks great! 

Let’s dive into the MANA/USDT 1 day chart and see why.

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MANA/USDT in a 1-Day Time Frame

As you can see on the chart, I have outlined three different supply and demand zones. The price is clearly stuck between a supply and demand zone; this allows us to play within the range.
Unfortunately, we are currently in a downtrend on the MANA chart, the good news is that we are sitting in the ‘golden pocket’ of Fibonacci levels. It would, therefore, make more sense to long this dip, rather than short it. Usually, the price respects the golden pocket. This is also complimented by the fact that if the token loses the demand level around $3, It is likely going to go to around $1.5 to $2. These types of levels are usually defended heavily by buyers. We can, therefore, be confident in any position we take, with clear invalidations easily being set. 

If the price manages to flip $4, it could be inferred that the price will attempt to it reach its all-time highs. This would result not only in a flip of the demand zone but also a breakout from the bearish market structure. Consequently, this level is going to be a challenge to flip. For example, three days ago when buyers drove up the price to this level, sellers stepped in and rejected it before it even reached the zone, thus showing the strong selling pressure MANA is currently under.  Let’s see if the weekly chart has any more areas of interest.

MANA/USDT in a 1-Week Time Frame

MANA has been on such a parabolic run that there are few price points to go off on the weekly chart. The main area to be identified is the demand zone between $2.89 and $2.80 that was tested during Bitcoin (BTC) dump last week. There is clear demand around this level. The large wick two weeks ago shows buyers stepping in.  As long as there is no weekly close below $2.80 price is still in an uptrend, which favors looking for longs instead of shorts. However, if the price starts to break down through $2.80 it would be assumed that we test $1.5 and fill in the price inefficiencies down lower. As an investor finding the best risk to reward trade is essential. To know whether MANA has the best R/R it is essential to look at the MANA/BTC chart. If MANA looks unlikely to outperform BTC it is not worth holding, let’s have a look at the chart to see.

MANA/BTC in a 1 Day Time Frame

If the price can hold 0.000069 SATS and reclaim 0.0000726 SATS on an S/R test, then we can infer that MANA is likely to outperform BTC in the foreseeable future, potentially going for ATHs against the BTC pair, especially if the price can break through the trendline. There are plenty of levels below showing clear demand. These levels are holding nicely with any big dip being snapped up. Whenever there are big wicks below the candles it is an indication that there is lots of demand, this is because the price has been forced down by sellers, only to meet heavy buying pressure lower. 

MANA/BTC in a 1 Week Time Frame

This chart looks very similar to MANA/USDT weekly, where the price still has a bullish market structure. As long as the price doesn’t close below 0.000045, it will have the market structure retained

It will be interesting to see what happens if it is to test the 0.000062 level. This is a big support level, and if broken, it signals a downward move of more than 25%. It looks as if it is going to underperform BTC here, however, this is likely to be short-lived.

MANA/AXS in a 1-Day Time Frame

Axie Infinity (AXS) is a metaverse project as well and has a market cap similar to MANA, both ranking in the top 50 projects by market cap, according to CoinMarketCap. This means it is wise to compare the two to make sure that we are holding the coin with the most upside. 

Should You Go for AXS Instead of MANA?

Although MANA was in a clear and brutal downtrend against AXS, it seems to now have found a bottom, forming a cup and handle formation. This is a bullish sign for MANA bulls and points to it outperforming AXS in the foreseeable future, especially if it breaks the trendline that I have outlined above. If the price breaks the trendline, you could expect more upside continuation, furthermore, making MANA the top pick among metaverse tokens. It also has a bullish market structure on the weekly with a series of higher highs and higher lows, therefore, allowing us to assume that price will continue to soar against AXS.

What Does the Fear and Greed Index Say?

There is still a considerable amount of fear at the moment with the fear and greed index being 27. This, therefore, means that investors are likely to be more risk-averse. For investors with cash in hand, it is good as it allows them to accumulate more coins as fearful market participants start to capitulate.

Summarizing Everything Explained Above

  • MANA has bounced by more than 1,400% since the July bottom, whilst also giving investors who bought at the start of 2021 a return of 4800% (at current prices)
  • MANA/USDT 1 day chart is sitting at ‘the golden pocket’ Fibonacci level, thus giving buyers a hint to long instead of short.
  • MANA/USDT 1 week chart is currently in an uptrend. However, due to the fact that there is small price history, it is hard to determine where the price may slow down. $2.90 - $2.80 is the area to hold for bulls.
  • If the price can reclaim 0.0000726 sats on an S/R test, then we can infer that MANA is likely to outperform BTC in the foreseeable future.
  • MANA was in a clear and brutal downtrend against AXS, but it seems to now have found a bottom. It has formed a cup and handle formation. This is a bullish sign for MANA investors and points to it outperforming AXS in the coming weeks. A trend line has formed, and if broken will likely allow MANA to gain some buying momentum.
  • The fear and greed index is at 27. Investors are, therefore, likely to be more risk-averse, which means that it could be a great time to accumulate more coins.
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