The chart examines the MANA/USDT (Decentraland) pair and shows a strong uptrend. Below is the technical analysis, support and resistance levels, formations and position strategy on the chart.
Technical Analysis:
1. Support and Resistance Levels:
• Support Level: The upper limit of the channel that the price has previously broken creates a strong support around 0.70 - 0.75 USD. This region can be considered an important support level that the price can hold in case of a pullback.
• Resistance Level: We see on the chart that the price is currently close to resistance levels. The resistance at 3.80 USD is particularly striking. This level may be an area that has not been tested before, but it could create a strong psychological resistance.
2. Formations:
• Falling Channel Breakout: There was a long-term falling channel formation and the price broke out of this channel and started a strong upward movement. Such breakouts usually indicate a trend reversal and a new uptrend.
• Bullish Formation: The price may form an upward bull flag or similar consolidation formation. The upward break of these formations may signal that the rise will continue.
3. Indicators:
• Volume: Usually such sharp breakouts are supported by volume. An increase in volume shows that investors support this rise and the price may continue.
• Momentum Indicators: Indicators like the RSI and MACD can be positive and indicate that the price is near the overbought area. However, this also means that we are in a strong trend.
Trend and Direction:
• An upward trend is currently in place. The price broke out of its long-term falling channel and started a strong rally. This trend is expected to continue, but there may also be periods of consolidation and pullbacks.
Strategy and Position:
1. Purchase Strategy:
• If there are existing positions, purchases can be made during periods when the price is consolidating. Especially in case of a price pullback, 0.70 - 0.75 USD
