- Decentraland price is extremely close to a massive bullish Ichimoku breakout.
- The rally from yesterday hit a wall as risk-on markets face significant selling pressure against rising oil and food commodity prices.
- A successful breakout could trigger a long-term swing with a projected gain of over 50%.
Decentraland price closed Monday with an 11% gain, completing the strongest daily candlestick close since January 31, 2022. Buyers hoped that the momentum would convert into a significant bullish breakout above the Ichimoku Cloud, but MANA has ultimately been hit by the same uncertainty that affected other risk-on assets.
Decentraland price faces two challenging Ichimoku levels preventing MANA from moving higher
Decentraland price action on its daily chart is almost comical. From February 16, 2022, to today, MANA’s price action has been restricted to the inside of the Ichimoku Cloud. The Cloud represents uncertainty, whipsaws, indecision, and volatility. If buyers want to propel Decentraland out of the Cloud, they’ll need to break two Ichimoku levels.
The top of the Ichimoku Cloud (Senkou Span B) and the Kijun-Sen share the $2.75 – $2.80 resistance area. That is the same area where Monday’s price action was halted against and the same level where bulls attempted to rise above but have since moved lower. MANA needs to close at or above $2.90 on the daily chart to trigger the beginning of a renewed uptrend.
However, a close of Decentraland price above the Kijun-Sen and the Ichimoku Cloud does not confirm an Ideal Bullish Ichimoku Breakout, that can only occur when the Chikou Span is above the bodies of the candlesticks (which it is) and in open space – a condition where it won’t intercept the body of a candlestick over the subsequent five to ten periods. That means the earliest an Ideal Bullish Ichimoku Breakout can occur is at the $3.45 level this week but $3.34 by next week.
If bulls can complete an Ideal Bullish Ichimoku Breakout entry, the projected swing high is at the 100% Fibonacci extension at $4.50.
MANA/USDT Daily Ichimoku Kinko Hyo Chart
Downside risks for Decentraland price remain a concern, especially given the proximity of the Chikou Span to the candlesticks. A daily close at or below $2.42 would not only invalidate any near-term bullish outlook, but it would likely trigger a continuation of selling pressure and initiate a retest of the $2.00 support zone.
