About a week ago, we explored the possibility of MANA exiting its triangle pattern. Fast forward to the present and that breakdown took place, courtesy of a crypto market sell-off that commenced this past weekend.
MANA exited the wedge or triangle pattern by pushing below its support line, contrary to the higher odds of a bullish breakout. The sell-off which kicked on 10 July pushed it down by more than 15% to as low as $0.75.
This means it retested the same support level where it bottomed out in June. It also managed a slight upside to its press time price of $0.79.
Source: TradingView
MANA’s bearish retracement kicked off after briefly interacting with the 50-day moving average. The 50% level of Relative Strength Index (RSI) also acted as a healthy profit-taking level after the rally it enjoyed in the previous week.
Analyzing the next move
MANA’s on-chain metrics suggest that its current downside might be short-lived. Its supply held by whales metric jumped by 0.48% on 13 July.
Source: Santiment
The whale transaction count metric registered activity by as many as five whales on 12 July, the same day that the supply held by whales metric bounced up. This confirms that most of that whale activity was accumulation, hence this outcome subsequently curtailed the bearish price action.
MANA bulls might be about to regain control but there is still some bearish pressure to contend with. Its supply distribution reveals that addresses with more than 10 million MANA contributed to most of the bearish pressure at press time. Their balances dropped by 0.03% as of 13 July.
Source: Santiment
Most of the other top addresses either ceased selling or accumulated slightly between 12-13 July. This includes addresses holding between 10,000 and 10 million coins.
Can MANA rejoice just yet?
Now that the bearish pressure has subsided, MANA bulls are poised to take over once again, especially if there will be enough demand. The fact that it is currently holding its June support level means there is a substantial likelihood of an uptick.
Such an outcome is however not a guarantee and the bears might still regain control if market factors favor them.