Decentraland Price Prediction: Today’s Decentraland (Mana) Price, 2nd Feb 2023

Decentraland Price Prediction:

The Decentraland (MANA) price is trading within a corrective pattern that could lead to a breakdown.

Since the beginning of the year, the Decentraland price has risen rapidly, reaching a high of $0.82 on January 27. The movement resulted in a break through of a long-term descending resistance line that had been in place since May 2022.

If the upward trend continues, the next closest resistance level would be at a price of $1.10. The area hasn’t been visited since August (red icon).

Despite the bullish price action, the daily RSI raises doubts about the upward movement continuing. This is due to the indicator generating a significant amount of bearish divergence (green line), causing it to fall below 70. Both of these are considered bearish indicators.

The technical analysis from the short-term six-hour chart predicts a Decentraland price for February, which corresponds to the readings from the daily time frame. There are two reasons for this:

For starters, the MANA price has been trading within an ascending parallel channel since January 16. Corrective movements are commonly found in such channels. As a result, a breakdown from it is the most likely scenario.

The six-hour RSI, like the daily time frame, has produced bearish divergence (green line). As a result, a channel breakdown is the most likely scenario.

If this occurs, the Decentraland price is expected to fall to the $0.55 support level. The $0.55 level is not only the 0.5 Fib retracement support level, but it also coincides with the previously defined resistance line.

Because of this convergence of support levels, the most likely scenario is a bounce once it reaches it.