Decentraland (MANA) is bouncing off its January slide and could swing 15% up

Decentraland (MANA) has been bouncing off from its early January slump. The metaverse token was one of the hottest coins in 2021, and despite the bearish trend in January, it seems like MANA is about to turn a corner. This uptrend could bring an upswing of up to 15%. Here are some highlights first:

Decentraland (MANA) is currently swinging between $2.20 and $2.82, a daily demand zone that could trigger bullish action.

At the time of writing, the token was trading at $2.96, up nearly 5% in 24-hour intraday trading.

MANA is also slightly above its 100-day Simple Moving Average, suggesting an uptrend is starting to emerge.

Data Source: Tradingview.com 

Decentraland (MANA) – Price action and prediction

After slumping quite substantially for the most part of the New Year, Decentraland (MANA) is starting to show signs of recovery. The coin has seen a 5% surge in 24 hours, albeit it’s still around 8% down for the week.

But crucially, MANA is now above its 100-day SMA. If current momentum holds, we expect the token to test its 50-day SMA of $3.63 in the coming days. However, investors should expect significant resistance around the $3.26 mark. 

Despite this, we are watching closely to see if MANA will consolidate around the 100-day SMA. If the token falls back from that position, it could suggest weakness, something that could easily push the price back to $2.20.

Should you buy Decentraland (MANA)?

Well, right now Decentraland (MANA) appears to be a bit discounted. The token is way below its all-time highs, and with metaverse related tokens expected to heat up in the near future, adding MANA to your portfolio is highly recommended. There could also be a short-term play for people who want to ride the price recovery after January’s slump, but it is very risky.