Trade Recommendation: Decentraland
We’ve been watching Decentraland/Bitcoin (MANA/BTC) for a possible entry point for a while now. Unfortunately, the cryptocurrency broke all but one support level. This is why it took us some time to release a trade report about the cryptocurrency.
Technical analysis shows that MANA/BTC is carving a bottom at our line in the sand of 0.000004. We have this view because the market dropped all the way down to 0.00000362 on January 26th. However, buyers appear to be returning as the cryptocurrency is getting bought up. What we want to see is a weekly close above 0.000004.
Fortunately, technical indicators favor bottom pickers. For instance, the weekly and daily RSIs are in extreme oversold territory. The selling relief plus the increased demand at a crucial support area is a formula that has worked for us many times in the past. We expect Decentraland to react favorably to bottom pickers. In addition, volume has been in a steady decline. This is a signal that sellers are losing interest to dump positions at this level.
The strategy is to buy as soon as MANA/BTC stabilizes at support of 0.000004. If bulls can recover this price level, we can expect a strong rally to resistance of 0.000009.
The process may take a month.
Daily Chart of Decentraland/Bitcoin on Binance
Summary of Strategy
Buy: As soon as the market stabilizes above 0.000004.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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