Will MANA Hold the Line? Key Trendline Retest Could Lead to an Upsurge

Decentraland (MANA) is at a critical juncture as it faces a key trendline retest that could determine its next major move. With the price hovering near a crucial support level, market watchers are keen to see whether MANA will hold the line and spark a bullish reversal.

As Decentraland (MANA) price faces a critical trendline retest, it could spark a bullish upsurge or a potential reversal. Here's a technical analysis examining MANA's critical retest and its implications for traders and investors.

Crucial Trendline Retest: A Spark For Bullish Upsurge

MANA's price attempts to retest a bearish trendline on the 4-hour chart, a crucial juncture that could ignite a bullish upsurge or a potential reversal. This retest follows a period of consolidation and multiple failed attempts to breach the 100-4H Simple Moving Average (SMA).

Now, as MANA's price faces this critical trendline, a successful bounce could trigger a sharp upsurge, signaling a breakout from the bearish structure and opening up potential for new highs. On the other hand, a failure to hold at this trendline might lead to increased volatility and uncertainty in MANA's price trajectory.

Technical Indicators Signal Bearish Pressure, But A Reversal In Sight

Examining the technical indicators, MANA's price is trading below the 100-day SMA on the 4-hour chart, indicating bearish forces. This price action, coupled with a clear attempt to retest bearish territory, suggests that bearish forces are still strong in the market and could push the price further down toward the key trendline support level.

Moreover, on the 4-hour chart, the Relative Strength Index (RSI) has fallen below the 50% mark, now at 33%. With the RSI hovering in the lower range, there is a higher chance that the price may continue to lose ground, potentially moving toward a critical trendline retest.

On the daily chart, MANA has been on a bearish trajectory, moving to retest the trendline after briefly trading above it and below the 100-day SMA, as evidenced by multiple bearish candlesticks. This downward movement reflects strong selling pressure and negative market sentiment, increasing the probability of the price reaching the trendline again.

Finally, the 1-day RSI shows bearish pressure on MANA. The signal line has dropped below 50%, now at 45%, which signals intensifying selling pressure and a growing negative sentiment for the digital asset.

Support And Resistance Levels: Where Is MANA Headed?

If MANA's price reaches the bearish trendline and faces a rejection, it could set the stage for a significant upsurge, and $0.3103 could be the next resistance zone. A successful breakout above this resistance might signal further gains, reinforcing the bullish trend aiming at the next resistance range at $0.3483 and other levels beyond.

Should MANA fail to hold below the bearish trendline, it may experience consolidation or fall back to the $0.2559 support level. When the price breaks through this support, it could continue its downtrend, possibly targeting $0.2170 and other lower support levels.

Currently, MANA is trading around $0.2792, marking a 3.7% decline. The cryptocurrency's total market capitalization stands at $518 million, with a trading volume of $27 million in the last 24 hours. During this period, MANA's market cap has decreased by 3.10%, and its trading volume has increased by 14.80%.

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