Why MANA’s investors should expect this from its price action in the near future

MANA was trading at $0.5279 at the time of publication. It fell by 80% in a year after a one-year resistance trendline stymied all price recovery attempts.

MANA was trading in a range of $0.6184-1.0692 after an extremely weak breakout from the trendline in August. If the price remains sideways in this range, investors can target the lows and highs.

A further move below the trading range, however, should be accompanied by a stop loss set at this Fib level.

Can this range sustain MANA price action any longer?

Source: MANA/USDT, TradingView

Two barriers have cornered MANA over the past year. After an upward move in late 2021, a trendline resistance blocked all attempts by buyers to recover and cash in on the altcoin. Sellers had the upper hand since December 2021 before exhaustion hit in May 2022.

A final attempt by the bulls failed to produce a convincing breakout and MANA ran into a second barrier – A range. Limited buying pressure undermined the price rally, as shown by the flattening On Balance Volume (OBV).

The altcoin’s price has stayed in the $0.6184 – $1.0692 range over the past five months.

The current range looks similar to the one from July to August 2021. Interestingly, MANA staged a big rally in last year’s range, ending with an ATH of $5.85 on 25 November. That would make the prevailing range a local bottom waiting for an upside breakout.

If this is the case, a weekly candle closing above and retesting support at $0.6184 would confirm an entry opportunity for long positions. The immediate target for long positions would be the range resistance at $1.1 and the secondary target at the Fib level of 0.236.

However, a weekly candle closing below $0.6184 would reinforce the bearish outlook. The Chaikin Money Flow (CMF) was below zero and the RSI was in oversold territory, confirming that sellers have been gaining momentum.

If sellers overcome the ongoing exhaustion, they’d push MANA below $0.6184 towards the 0-Fib level at $0.3849. Therefore, $0.3849 could be a stop loss if the downtrend continues.

Long-term MANA holders suffer losses as network growth declines

Source: Santiment

According to Santiment, MANA saw significant network growth in Q1 and Q2 2022. An increase in prices accompanied this network growth uptick.

However, the overall network growth of MANA has been declining since May. Long-term MANA holders are yet to book profits from their investment, as underlined by the negative 365-day MVRV (Market Value to Realized Value ratio).

Investors should therefore follow MANA’s sentiment and the movement of BTC as it correlates positively with it.

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