Waiting for a discount or confirmed rally before buying? To Do List for MANA Investors

Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

Decentraland, the largest Metaverse token by market cap, performed very well in October. Since then, although prices have fallen, there has been some evidence of slow but steady purchases in the market. Long-term investors would need a lot of patience in the coming weeks – there are areas where buying the token makes sense. At the same time, it was unclear whether MANA would drop to these levels.

MANA-1D

Source: MANA/USDT on TradingView

At the time of writing, the market was in a downtrend, both Decentraland and Bitcoin. A string of Fibonacci levels (yellow) was plotted based on MANA’s rapid rise from $0.61 to $4.94 in late September and October 2021.

In mid-November, MANA was able to climb back above $5 and nearly hit the 27.2% extension level before facing selling pressure. For investors with a long horizon, the area between the 61.8% retracement level and the 78.6% retracement level is generally an area where investors like to use Dollar Cost Average (DCA) in their purchases.

The market structure for MANA was bearish – the bulls tried to turn the bias in their favor earlier in February but failed.

Therefore, two scenarios are interesting for long-term buyers: either they can wait for the price in the above pocket to drop to DCA to make spot purchases, or they can wait for a reversal in the market structure to move upwards. This would require MANA to flip $3.5 to support.

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Source: MANA/USDT on TradingView

On the RSI, the 40 and 60 levels respectively mark areas below and above them where momentum can be strengthened in that direction. At the time of writing, the RSI stood at 45.23, which was close to neutral. Also notable was the inability to stay above 60 for quite some time since December.

The Awesome Oscillator sank back below the zero line, reflecting the bearish momentum since the rejection at $3.29. The price also traded below the 21 SMA and 55 SMA (orange and green, respectively).

The OBV has formed higher lows in recent months, suggesting that long-term buyers were indeed present against the backdrop of daily volatility.

Conclusion

It was difficult to be optimistic about a currency at a time of uncertainty in the markets. MANA showed a bearish market structure, but also presented an area where long-term investors might be interested in buying the coin.

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