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- The market structure was bearish, but indicators pointed to a shift in momentum
- It seemed unlikely that the bulls would regain control in the coming days
In January, Decentraland registered a strong rally in the price of its token. This was not unique to MANA, but was the result of a shift in market sentiment. After posting gains of 184% in a month, MANA was rejected multiple times around the $0.8 resistance level.
Read Decentraland’s [MANA] Price Forecast 2023-24
Over the past two weeks, the previous uptrend has begun to shift more and more in favor of the sellers. The crypto started registering lower highs. Last Friday, it broke below a critical level of support and looked like it could take further losses.
The confluence of resistances at $0.634 could prove extremely difficult to beat
Source: MANA/USDT on TradingView
The 4-hour indicators highlighted that buyers could be in the majority. The Awesome Oscillator crossed above the zero line indicating that bullish momentum was strengthening. The CMF stood at +0.12, underlining the massive inflow of capital into the market. Both indicators suggested further gains could follow, but the 21 and 55 period moving averages showed that a downtrend was underway.
And yet, MANA traded below resistance at $0.614. When prices fell from $0.64 to $0.574 on March 3, it left a huge imbalance on the charts, which was reflected in the white box.
Realistic or not, here is the market cap of MANA in terms of BTC
A bullish order block from February 13 was broken during this dump and is now a bearish breaker block. This box is highlighted in red and has a concurrence with the $0.614 resistance and the fair value gap. The market structure in H4 was also strongly bearish as MANA made lower highs and lower lows since Feb. 24.
Therefore, another move to the south seemed very imminent. In the South, the next level of support was at $0.57 and $0.535.
The strong spike in Open Interest showed that short-term sentiment was bullish
Source: Coinalyse
The 15-minute chart revealed that as MANA recovered from $0.57, Open Interest rose alongside it. This lower time frame rally ended at $0.62, but still represented a gain of nearly 9%. This was an important step from a scalper’s perspective.
While the spike in OI showed that bulls were fueling this rally, OI began falling in the last few hours before press. Meanwhile, the funding rate remained positive, highlighting the presence of some optimistic sentiment.