Metaverse token MANA has struggled to register gains throughout December following a risk off-broader market. In fact, losses over the last 30 days amounted to 23%. Mini-rallies have had a little long-term impact as the token has struggled to shake off its streak of lower highs. The alt’s near-term price action awaited a much-needed rally following a 13% decline over the last 48 hours.
However, a temporary price hike was not a farfetched idea considering MANA’s recent price action and oversold readings along with the RSI.
MANA 4-Hour Time Frame
MANA has been unable to recapture the last ground on the chart since witnessing a descending triangle breakdown on 3 December. However, investors have flocked into the market every now and again for some quick gains. Mini rallies observed on 6, 11, and 18 December proved that the alt remained an attractive choice of investment for bullish investors.
In fact, these gains were observed after steady southbound price action, which meant that investors were bagging MANA at discounted price levels. Now that the MANA was on yet another downwards run, its price could be in store for a possible hike after tagging a strong support level.
Here’s where the 50% Fibonacci level takes center stage. The aforementioned defense helped cushion a major decline on 4 December and initiated a temporary price recovery.
MANA’s indicators also offered some tell signs in terms of an incoming hike. The MACD had tagged its lower sloping trendline for the fourth time in 16 days. The index has been shown to bounce back upwards each time it has touched this trendline. Moreover, the RSI was close to oversold levels and prompted an immediate recovery on the chart. On the flip side, short-selling was still a threat as the Awesome Oscillator’s slipped beneath its half-line. Expect bears to tighten their grip if MANA weakens below the 50% Fibonacci level.
MANA bulls could initiate a hike if current losses do not stretch below the 50% Fibonacci level. Traders can opt to long MANA at the immediate support of $2.92 or at $2.85. However, expect a short-lived recovery as sellers still remain dominant.