Friday, December 2, 2022

Oversold RSI Could push Decentraland (MANA) up significantly in the near term

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The last 7 days have been bitter-sweet for Decentraland (MANA). After initially falling, the coin has started to gain some upward momentum albeit it hasn’t been that much. But an RSI reading suggests that a potential bull run is possible. Here are the main facts:

  • RSI readings show MANA is now oversold, suggesting the risk of a major sell-off is low.

  • With limited downside risk, MANA could bounce back steadily in the near term.

  • The coin could surge by 50% in this bullish setup.

Data Source: Tradingview 

How can MANA smash $3?

The recent uptick in bullish momentum has not been that huge. But it has been enough to bring MANA above a crucial support zone of around $2. Bulls have done quite well to keep the price action above this. As the price consolidates, we expect it to push further towards the overhead resistance of $2.3. 

The Relative Strength Index or RSI appears to suggest that this is actually more likely. You see, in recent days, RSI readings have moved towards the oversold territory. This basically suggests that the risk of any major sell-off as far as MANA goes is very low. 

As a result, the only way is up. If indeed MANA is able to breach overhead resistance at $2.3, then it is a matter of time before it reaches $3. The biggest challenge however will be to maintain the price action above $3.

How can investors profit from this bullish setup?

There are two ways to profit from this MANA bullish setup. First, you can buy above the $2 support. As the token tests $2.3, you can either exit or bet on it, hitting $3. Either way, a run towards $2.3 still makes you 15%.

Secondly, you can wait for the coin to breach overhead resistance at $2.3. MANA will likely surge to $3 after that, delivering gains of around 25%.

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