Decentraland (MANA) Faces Downside Risk Toward $2.90, Are You Taking The Risk!

Decentraland (MANA) price enters into profit booking zone after recent rallies from the lows of Jan 20 with an upside rally of nearly 45%. Bears could test 50-DMA $2.90 in the upcoming few sessions. Further, it would be interesting to watch if MANA could be near this level.

• Decentraland (MANA) falls for the second straight day.
• An Evening star formation indicates downside pressure in the metaverse coin.
• Overbought RSI warns of aggressive bids.

As of writing, MANA/USD is trading at $3.18 with a 24-hour trading volume of $1,050,386,551 down 30%.

Evening star on daily chart favors Bears

On the daily chart, MANA devalued nearly 70% from the all-time high made in November at the high of $5.91. Further, the price has breached the 50-DMA on February 5 once it breaks below the significant level on December 13.

Source: Trading view

The formation of the ‘Hammer’ candlestick pattern, which is a bullish formation made at the lows made in January pushed the price up 35%.

Now, the current price rally seems to be exhausted as investors encounter ‘double top’ and ‘Evening star’ formation near $3.45. Both technical setups supports the bearish outlook for the coin in the short term. The first immediate target could be found at the 50-DMA.

Next, a decisive close below the mentioned moving average would explore the demand zone placed around the $2.50 horizontal support line. The Daily Relative Strength Index (RSI) has been trading in the overbought zone with a downside tilt.

On the other hand, Investors would look after the highs of December 27 at $3.97 if the price is able to cross above the session’s high.

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