MANA has been falling since reaching an all-time high price of $5.90 on Nov. 25. The downward movement led to a low of $1.71 on Jan. 22.
Initially, it seemed that the decrease had caused a breakdown below the $2.35 horizontal support area. However, the price immediately reversed, rendering the previous decrease as a deviation only (green circle).
The upward movement continued until Feb. 9, leading to a high of $3.55 (red icon). This validated a descending resistance line that has been in place since the aforementioned all-time high.
Since then, MANA has been decreasing and returned to the $2.35 horizontal area once more.
While the reclaim of the $2.35 area is a bullish development, technical indicators for MANA provide a very mixed reading.
The MACD, which is created by a short- and a long-term moving average (MA) has just begun to move upwards. However, it is still negative. This means that while the short-term MA is accelerating relative to the long-term one, it is still slower.
Furthermore, the RSI is below 50. The RSI is a momentum indicator, and readings below 50 are considered bearish.
Similarly to the daily time-frame, the six-hour one shows that MANA has been following a descending resistance line since Feb. 9.
Therefore, until it breaks out from this line, the trend cannot be considered a bullish.
A breakout from the short-term descending resistance line would also cause a breakdown from the long-term one, suggesting that the trend is bullish.
MANA wave count analysis
Cryptocurrency trader @CryptoTony_ tweeted a chart of MANA, stating that it is possible that the price has begun a new bullish impulse.
The long-term count suggests that MANA is in wave five (white) of an upward movement that began in July 2021. It is possible that wave four ended on Jan. 22.
The sub-wave count is given in red.
The short-term count indicates that sub-wave two could have ended on Feb. 24 (blue line). The minor sub-wave count is given in black.
A decrease below the Jan. 22 low (red line) at $1.71 would definitively invalidate this possibility, while a decrease below the Feb. 24 low (blue line) at $2.19 would put it in doubt.
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