The last seven days have been bittersweet for Decentraland (MANA). After an initial decline, the token has picked up some upward momentum, although not dramatically. The RSI indicator, however, suggests a potential bullish move. Key points:
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The RSI shows MANA has entered oversold territory, indicating the risk of a large sell-off is currently low.
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With reduced downside risk, MANA could steadily rebound in the short term.
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In a favorable scenario, the token could rise by as much as 50%.
Data source: TradingView
How could MANA reach $3?
The recent uptick in bullish momentum has been modest but sufficient to lift MANA above a key support area around $2. Buyers have so far held the price above that level. As price consolidates, we expect additional upward pressure toward the broader resistance near $2.30.
The relative strength index (RSI) reinforces this outlook. Over the past few days, the RSI has moved into oversold territory, which generally implies a low probability of a significant sell-off for MANA at this stage.
Consequently, the path of least resistance appears to be upward. If MANA can convincingly break the $2.30 resistance, it becomes a matter of time before it tests $3. The primary challenge after that will be sustaining price action above $3.
How can investors take advantage of this bullish setup?
There are two practical approaches to capitalizing on MANA’s bullish setup. First, investors can buy around the $2 support level. If the token tests $2.30, you can choose to take profits there or hold a position anticipating a move to $3. Even a rise to $2.30 would deliver roughly a 15% gain from the $2 level.
Second, investors can wait for a confirmed breakout above the $2.30 resistance. If MANA clears that level and momentum continues, a move toward $3 becomes more probable, offering about 25% upside from $2.30.