MANA recently revisited its lowest levels in multiple years, coming close to $0.25, following a breakout of a bearish pattern on its daily chart. However, the expected decline found support at the $0.25 threshold, leading to a recovery that saw MANA surpass the $0.269 level, which is above the 20 EMA. Currently, MANA is exchanging hands at $0.275, registering a nearly 5.8% increase in value within the last 24 hours.
Is it Possible for MANA Bulls to Regain Strength above the 50-day EMA?
The recent uptrend came about after sellers retested the $0.25 support line the previous week. Consequently, MANA remained above the 20-day EMA, indicating the beginning of a potential short-term recovery.
If the uptrend continues, immediate resistance levels to watch out for include the 50-day EMA, sitting at $0.285, and the $0.28 resistance area. Breaking past these levels could set the stage for a retest of the $0.31 resistance in the weeks ahead.
Nevertheless, with the market sentiment still leaning towards ‘Fear,’ buyers are advised to await clear signals before considering long positions.
It’s worth highlighting that the recent recovery received additional support from a bullish divergence observed on the Relative Strength Index (RSI). The RSI, rebounding from oversold conditions, is currently hovering close to the neutral 50 mark. A move above this level might confirm a stronger bullish trend.
The Moving Average Convergence Divergence (MACD) displayed reduced bearish momentum and experienced a bullish crossover between the MACD and Signal lines. Confirming a close above the zero level could signal an extended uptrend for the altcoin.
Insights from Derivatives Data
The long/short ratio was at 1.0483, indicating a slight bullish sentiment with more long positions than shorts, particularly evident in Binance’s MANA/USDT long/short ratio, standing at 2.63.
Conversely, liquidation data suggested pressure on short positions, with $3.71K in shorts being liquidated within the past 1-12 hours, and $5.67K in the last 12-24 hours. This data further supported the recent bullish price movement.
The short-term outlook for MANA relies heavily on the ability of the bulls to uphold control above the 20-day EMA and overcome the $0.2854 resistance barrier. Surpassing this level could pave the way for a revisit of the $0.31 resistance zone, solidifying the recovery. Traders are advised to closely monitor the RSI and MACD for confirmation of a sustained bullish direction.
Additionally, tracking Bitcoin’s price movements could offer valuable insights, given MANA’s strong correlation with BTC.