Top 3 Cryptocurrencies To Watch This Week, Decentraland, Polygon, Cardano: MANA Bears Eye A Test Of $1.50

Last Updated January 25th 2022
6 Min Read
  • Decentraland sellers refuse to give up yet, as MANA price eyes a sustained move below 200-DMA.
  • Polygon price finds acceptance below 200-DMA, as MATIC bears extend the head-and-shoulders breakdown.
  • Cardano price is breaking lower from the bearish consolidative mode, may confirm a bullish wedge fakeout.

The crypto market continues to languish in a sea of red, with Bitcoin wavering in the mid-$30,000s after Friday’s collapse.

The sell-off in the flagship cryptocurrency has left the digital assets space in shambles, with the road to recovery seems a distant dream. The crypto carnage has eroded the total market capitalization by half, with certain altcoins nearing an 80% retracement from their 2021 peaks.

The next favourite digital asset after Bitcoin, Ethereum, also suffered heavy losses, with the $2,000 level now looking at risk.

Amongst the altcoins, Polygon price failed to take advantage of the tumble in Ethereum, which drove the ETH whales to diversify into MATIC, as the latter integrated proof-of-stake mainnet with FTX.

Meanwhile, industry experts believe that the metaverse token Decentraland, which is built on the Ethereum blockchain, could increase Ethereum's valuation through a spike in transactions.

How are MANA, MATIC and Cardano positioned on the charts?

MANA bears charting a bear flag, more losses in the offing?

The recent meltdown across the crypto board saw Decentraland price hitting the lowest levels in three months at $1.714 on Saturday.

Thereafter, MANA price entered into a phase of downside consolidation, as sellers took a breather after plummeting about 32% in the previous week.

MANA bulls continue to find support around $1.80 levels but bears refuse to give up yet, keeping the downside risks intact for the altcoin.

From a short-term technical perspective, MANA price has carved a potential bear flag formation on the daily chart, in the face of the recent consolidation that followed the steep sell-off.

A firm break below the critical demand area around $1.90-$1.85 on a daily closing basis will validate a bear flag, calling for a continuation of the preceding downtrend.

That price zone is the confluence of the 200-Daily Moving Average (DMA) and the rising trendline support.

Bears will then retest the three-month lows, below which the selling pressure will likely intensify.

MANA price will then gear up to challenge the levels not seen since October last year around the $1.50 mark.

The 14-day Relative Strength Index (RSI) is sitting just above the oversold region, which implies there is more room for MANA bears to flex their muscles.

Meanwhile, bearish 50-DMA is set to cross the upward-sloping 100-DMA for the downside, adding credence to the bearish outlook on Decentraland price.

MANA/USD: Daily chart

MANA daily chart

However, if MANA bulls manage to defend the abovementioned key support around $1.90, then a bounce towards the rising trendline resistance at $2.241 cannot be ruled out.

Daily closing above that level will defy the chances of a bear flag formation, disappointing MANA bears.

The road to recovery will then pick up pace, aiming for a retest of the downward-sloping 21-DMA at $2.752.

Read Also: Should You Buy Decentraland (MANA)?

Polygon bears look to extend control while below 200-DMA

Polygon price is off the three-month lows of $1.308 but remains in the red zone for the second straight day on Tuesday.

The underlying bearish tone across the crypto market keeps the sellers alive and kicking in around the $1.60 threshold, as MATIC price sheds over 3% to trade at $1.461, as of writing.

MATIC price reached fresh 2022 lows a day before, reversing Sunday’s temporary bounce, as the selling pressure around the coin remains unabated.

The latest leg higher in SHIB price lifts the coin from the lowest levels seen in eight days, as the upswing appears to hold momentum amid a relief rally seen across the crypto board.

Looking at MATIC’s daily technical graph, bears remain on track to extend the downside breakout from a two-month-long head-and-shoulders formation confirmed last Thursday.

The bearish potential is backed by Polygon’s acceptance below the mildly bullish 200-DMA at $1.622.

If sellers manage to take out the three-month troughs, then a fresh downswing could kick in towards the $1.50 psychological level.

The additional declines will challenge the bullish commitments near $1.10, mid-October 2021 lows.

The daily RSI is pointing south, probing the oversold territory while suggesting that MATIC price could drop further before it stages a comeback amid extremely oversold conditions.

MATIC/USD: Daily chart

MATIC daily chart

On the contrary, recapturing the 200-DMA support now resistance is critical to initiating any meaningful recovery.

Up next, MATIC bulls will target the January 22 highs of $1.755 on their journey towards the $2.0 mark. That level could offer strong resistance to Polygon’s recovery attempts.

Check Out: 15 Reasons Why You Should Invest In Polygon

Cardano price looks vulnerable, focus on daily close

Cardano price is tracking the damp mood so far this Tuesday, losing 2.80% on the day, as ADA bulls try hard to defend the $1.0 level.

ADA price breached the latter and hit nine-month lows of $0.917 over the weekend, as the downward spiral knocked down the rates by nearly 20% in the previous week.

ADA sellers are licking their wounds, in the aftermath of the recent crypto carnage, preparing for additional losses while clinging onto the critical daily support line at $1.05. That level is the lower boundary of a falling wedge.

Note that ADA price validated the falling wedge breakout on January 17, although bulls failed to benefit from the upside break, as bears stepped in with a full vengeance.

The so-called ‘Ethereum-killer needs a daily closing below the latter to extend the ongoing downtrend. Such a move will confirm a fakeout of the bullish wedge.

The lowest levels since April 2021 at $0.917 will be back on ADA sellers’ radars. The descending RSI on the said timeframe justifies the latest downbeat momentum in Cardano price.

The round level of $1.80 will be the level to beat for ADA bears.

ADA price is rebounding from four-day troughs of $1.317, as buyers remain committed to recapturing the $1.50 psychological level.

ADA/USD: Daily chart

ADA daily chart

Alternatively, the immediate resistance is seen around the recent range highs around $0.15-$0.17.  

Should the rebound gain conviction, ADA buyers will head towards the bearish 21-DMA at $1.24 once again.

Ahead of that hurdle, the $1.20 figure will emerge as powerful resistance.  

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