What does it mean when a coin consolidates?
According to TechStacher: “The Consolidation phase in crypto, stocks, or any type of trading, is a term used when stocks appear to neither go up or down in a clear pattern. Instead, the pattern goes somewhat sideways (horizontal), with the ups and downs offsetting each other. In these consolidation phases, stocks are traded within a narrow range, for example, $900 to $950 which makes it hard to make a significant profit on trades (unless your investment is big), compared to normal phases, where prices could swing much more, for example, $800 to $1200 within 24 hours.”
That, of course, also applies to cryptocurrency as well. In particular, to Decentraland MANA as of late.
Decentraland (MANA) has reported some of the most breathtaking gains in crypto over the last day. The coin is now consolidating, and there is a chance it could see more upward movements in the coming week. Here is what you need to know:
MANA has rallied by nearly 60% after crashing at the start of the week
The coin has now surged past the crucial $1 mark
Bulls will aim to test $1.5 in the coming days after consolidation this weekend.
Data Source: Tradingview
Can MANA defy the odds and hit $1.5?
Although we expected the market to bounce back slightly after this week’s crash, MANA appears to have just exploded. After adding nearly 60% in value over the last 24 hours, the coin is now trying to consolidate above the crucial $1 mark.
So far, things are looking good. While some investors fear that the rally could correct steeply, if the price stays above $1, then there will be enough buyer confidence to push MANA towards $1.5. Besides, momentum indicators like the RSI appear to suggest that MANA’s recent run is far from over.
But there are some important downside risk factors to keep in mind. First, MANA has outperformed the broader market in its recovery. If there is any slight decline in crypto over the coming days, MANA losses could be much bigger compared to other major coins. Also, the metaverse token still remains pressured below its 50- and 200-day EMAs. These two points present stiff upward resistance that will make the idea of $1.5 improbable in the short term.
What to do with MANA right now?
The best thing to do would be to just watch. Yes, even though we think the coin could test $1.5, the downside risks are still huge.
If indeed the metaverse coin is able to maintain the price above $1 at the start of trading on Monday, then you can buy and cash out at $1.5.
Via this site.
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