Decentraland Mana (MANA/USD) was trading over 9% lower on Sunday and investors are now looking to buy the dip with hopes of a new rally soon. Mana surged by over 300% in October and after a sideways consolidation this month investors are predicting that a huge rally is about to come however is it safe to enter now?
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Mana had formed a symmetrical triangle earlier this year and a very strong breakout was seen, Mana rallied from $0.75 to $4.85 in just three days.
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A sharp correction was seen after the rally where Mana fell by over 50% from its high, thus investors must be cautious as Mana is a very volatile coin.
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Mana has formed a double top and has also been rejected from the trendline, adding to that Mana has also formed an RSI bearish divergence which is suggesting that Mana could fall further.
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Long entries should be avoided now as it is looking like Mana will be going down to the support level at $3.13.
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A bullish crossover was also formed in October which is showing that Mana is bullish however investors must be patient and enter at a lower price.
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An entry can be taken around the support level at $3.13 as Mana should reverse from the demand zone.
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A target of $3.8 can be set followed by a new all-time high in the coming months.
Conclusion
Mana is now in a correction phase however this does not mean that it is the end of the rally and Mana could hit a new all-time high in the coming months. However investors must be cautious by maintaining a stop-loss Mana is a volatile coin.
