MANA recently revisited its lowest levels in years, near the $0.25 threshold, following a breakout indicating a downward trend on its daily chart. Nevertheless, the projected decline found support around the $0.25 mark, allowing MANA to rebound and recapture the $0.269 level above the 20 EMA. Currently, MANA is trading at $0.275, registering an increase of almost 5.8% in the last 24 hours.
Is it Possible for MANA to Regain Position Above the 50-day EMA?
The recent surge in bullish activity followed a test of the $0.25 support level by sellers last week. Consequently, the altcoin remained above the 20-day EMA, signaling early indications of a potential short-term recovery.
A sustained upward trend from this point might encounter immediate resistance near the 50-day EMA at $0.285 and the $0.28 resistance region. If buyers manage to surpass these levels, a revisit of the $0.31 resistance could be within reach in the upcoming weeks.
However, considering the prevailing sentiment is still characterized by fear, buyers should exercise caution and await substantial signals before considering a long position.
Notably, the recent recovery was bolstered by a bullish divergence on the Relative Strength Index (RSI). The RSI, which rebounded from oversold levels, is currently hovering around the neutral 50 mark. A breakthrough above this level could validate a more persistent bullish stance.
The Moving Average Convergence Divergence (MACD) suggested a weakening bearish momentum and displayed a bullish crossover between the MACD and Signal lines. Should these lines close above zero, the altcoin might experience an extended uptrend.
Insights from Derivatives Data
The long/short ratio stood at 1.0483, indicating a slight bullish bias with more long positions compared to shorts, particularly evident in Binance’s MANA/USDT long/short ratio at 2.63.
On the contrary, liquidation data suggested pressure on short positions, with $3.71K in short liquidations recorded in the past 1–12 hours and $5.67K in the preceding 12-24 hours. This data further corroborated the recent bullish price movements.
The near-term prospects for MANA heavily rely on the ability of bulls to maintain control above the 20-day EMA and breach the $0.2854 resistance level. A successful breakthrough here could pave the way for a challenge of the $0.31 resistance region and reinforce the recovery process. Traders are advised to closely monitor the RSI and MACD indicators for confirmation of a sustained bullish sentiment.
As always, closely observing Bitcoin’s price movements could offer valuable insights, given the strong correlation between MANA and BTC.