Decentraland had a pretty impressive week. The MANA price has increased nearly 500% since October 28th. Halfway through, MANA stalled and briefly consolidated after hitting $ 4.95 on some exchanges on Oct. 31. Altcoins recovered quickly, however
In fact, it seems like a way to hit $ 5 again. However, to achieve this success, the next 24 difficult hours must be mastered.
Difficult for MANA for 24 hours
Additionally, the funding yield curve appears to be down on most exchanges at the time of writing. Although the curves were able to hold out above the 0% mark, their downward slope does not give any optimistic signs.
This shows that the majority of traders are slowly turning down, even though long positions pay a premium for short positions. Eventually, if pessimism builds, the funding rate will break into negative territory and could rock the price of MANA.
However, at the time of going to press, Open Interest (OI) was already at its peak. This shows that the number of unsettled contracts held by futures traders is increasing.
However, if you look at the long-short ratio, it becomes clear that new traders entering the market have really started to favor the short-term bearish narrative.
In addition, long contracts were heavily liquidated in the last few sessions. However, at the time of this writing, even those numbers are rising.
In the past four hours alone, long contracts worth $ 2.15 million have liquidated, compared to just $ 118.48,000 short contracts. This means that the futures market has started to favor the bears.
According to the MANA price chart, the downward trend has become even clearer in the last few hours.
From November 12th to the start of the November 13th session, the altcoin price rose nearly 43%, but then lost more than 13% in value. In addition, it created a red candle in the process and is expected to fall even lower in the coming hours.
MANA break below the USD 3.53 resistance appears to have made things worse. The next strong supports for MANA are at $ 3.18 and $ 3.04. So if bearish sentiment persists, traders should expect a deep correction. However, the chance of falling below $ 3 seems pretty slim at this point.
There is no denying that the macro bullish bias for the coin is still intact. However, it will have to stay strong for the next few hours to continue climbing towards $ 5.
Hence, long-term MANA traders need to be more cautious than ever in the face of the aforementioned short-term bearish sentiment.
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According to Ambcrypto