- MANA continued its long-term downtrend but recently reclaimed some crucial support levels
- Altcoin derivatives data hinted at bullish trend while overall market sentiment remained uncertain
MANA recently retested its multi-year lows around $0.25 after registering a bear flag breakout on its daily chart. However, the anticipated breakout found a rebound ground at the $0.25 level. This allowed MANA to bounce and reclaim the $0.269 support above the 20-EMA. At press time, MANA was trading at $0.275, up nearly 5.8% over the last 24 hours.
Can MANA Bulls Reclaim a Spot Above the 50-Day EMA?
Source: TradingView, MANA/USDT
The latest bullish push came after sellers retested the $0.25 support level last week. As a result, the altcoin remained above the 20-day EMA and showed early signs of a short-term recovery.
A sustained upward trajectory from here could face immediate resistance near the 50-day EMA at $0.285 and the resistance zone at $0.28. If the bulls break above these levels, a retest of the resistance at $0.31 could become possible in the coming weeks.
However, given that the the general feeling was still in the “Fear” zoneBuyers should look for substantial signals before entering a long position.
It is worth noting here that the recent rally has been further reinforced by a bullish divergence on the Relative Strength Index (RSI). The RSI has rebounded from oversold levels and, at press time, was hovering around the neutral 50 mark. A jump above this level could confirm a more sustained bullish bias.
The MACD showed a decrease in bearish momentum and saw a bullish crossover between the MACD and the signal line. If these lines close above zero, the altcoin could see an extended uptrend.
Derivatives data revealed THIS
Source: Coinglass
The long/short ratio stood at 1.0483. The market revealed a slight bullish trend with more long positions than short positions, especially with Binance’s MANA/USDT long/short ratio showing a value of 2.63.
On the other hand, liquidation data showed that short positions were being squeezed, with $3.71K in short liquidations over the last 1-12 hours and $5.67K liquidated over the last 12-24 hours. This data further reinforced the recent bullish price action.
MANA’s short-term outlook is highly dependent on the bulls maintaining control above the 20-day EMA and breaking the $0.2854 resistance. A close above this level would open the doors for a retest of the $0.31 resistance zone and consolidate the recovery. Traders should also closely monitor the RSI and MACD to confirm a sustained bullish bias.
As always, monitoring Bitcoin price action could provide important insights. Especially since MANA has a strong correlation with BTC.
