- Decentraland price develops massive bullish breakout setup.
- A powerful bullish reversal setup could trap a large number of short-sellers.
- Downside risks exist and could be extensive if support fails.
Decentraland price could generate some major surprises across the entire cryptocurrency space. Despite six days of losses, it has maintained support within the Ichimoku Cloud and is now poised for a strong bullish breakout.
Decentraland price positioned to trigger a giant bear trap, propelling MANA towards $4
Decentraland price action was not immune to the intense selling pressure faced by nearly every cryptocurrency. From the high of $3.33 last Wednesday to the current daily low at $2.38, MANA lost 30% of its value. So for six painful (for bulls) consecutive days, MANA dropped lower – that trend may end today.
Despite the intense selling pressure over the last week, Decentraland price has not capitulated. In fact, over the past week, the threshold required for MANA to begin a new Ideal Bullish Ichimoku Breakout entry has dropped significantly from $3.50 last Wednesday to $2.94 today, and by Wednesday, it drops even further to $2.84.
Decentraland price has one primary resistance level in front of it, the 38.2 %Fibonacci retracement at $2.58. If bulls can rally MANA above that, the next stop is a daily close at or above $2.85. However, to reach that price level, bulls will be severely tested due to the Tenkan-Sen, Kijun-Sen, and top of the Ichimoku Cloud (Senkou Span B) forming the final resistance before breaking out above the Cloud.
MANA/USDT Daily Ichimoku Kinko Hyo Chart
However, Decentraland price is close to converting into another Ideal Bearish Ichimoku Breakout. If sellers complete a daily close at or below $2.25, then a return to the $1.75 value area is almost certain.