MANA has been declining since reaching an all-time high of $5.90 on November 25. The downside movement led to the January 22 low of $1.71.
Initially, it looks like the decline caused a break below the $2.35 horizontal support area. However, the price reversed immediately, rendering the previous decrease as a mere divergence (green circle).
The upward move continued till February 9, reaching a high of $3.55 (red sign). This validates a descending resistance line that has been in place since the above all-time high.
Since then, MANA has been declining and is back again in the $2.35 horizontal zone.
mixed readings
While the reclaiming of the $2.35 area is a bullish development, the technical indicators for MANA are providing very mixed readings.
The MACD, formed by a shorter and longer term moving average (MA), has just started an upward move. However, it is still negative. This means that while the short-term MA is accelerating relative to the longer term, it is still slowing.
Besides, the RSI is below 50. The RSI is a momentum indicator, and readings below 50 are considered bearish.
Similarly for the daily time frame, the six hour chart shows that MANA is following a descending resistance line since February 9.
Therefore, the trend cannot be considered bullish until it crosses this line.
A breakout from the short-term descending resistance line would also lead to a breakout from the long-term one, indicating that the trend is bullish.
mind wave count analysis
cryptocurrency trader @CryptoTony_ Tweeted a chart from MANA, which said that it is possible that the price has started a new bullish trend.
Long-term calculations show that MANA is in an upward wave five (white) that began in July 2021. It is possible that wave four will end on January 22.
The sub-wave count is given in red.
Short-term calculations indicate that sub-wave 2 could have ended on February 24 (blue line). The minor sub-wave count is shown in black.
A drop of $1.71 from the January 22 low (red line) would certainly invalidate this possibility, while a drop of $2.19 below the February 24 low (blue line) would put it in doubt.
For Latest from BeInCrypto Bitcoin (BTC) Analysis, Click Here,
What did you think of this topic? Write to us and let us know!