From September 12th low when the price of Decentraland’s Mana was around $0.0513 till today we can see that the coin has increased in value by over 23%.
As you can see from the chart below the price went even further up, spiking to $0.071 but has retraced since to the levels of key horizontal support at $0.063
Looking at the MANA/USD daily chart we can see why this level is considered to be the key horizontal support level. As you can see, after the initial exponential increase the price has been correcting inside of the descending wedge pattern which I have labeled as a WXYXZ correction.
The price only recently broke the key horizontal support level and was below it for nine days before it went above it yesterday when the cryptocurrency market experienced recovery. Now we can see that the price has fallen back to the mentioned level retesting it for support. As I have labeled this correction as a complex correction with five waves, counting the sub wave I believe that the last downswing wave is being developed which would lead up to the completion of the last Z wave.
Looking at the 4-hour chart I have counted this complex correction and have validated my count. As you can see the last minor correction has been labeled as a WXY for now, but as the wave X is around 0.382 I would expect that this corrective structure gets complicated than the current projection, much like it did on the first one.
As you can see the last upswing was stopped out at the 0.236 Fibonacci retracement level and which is why the price has retraced back to the last horizontal support level at $0.063 looking for support.
Zooming into the hourly chart we can see that the price broke out off of the ascending channel on the downside with a strong momentum indicated by the big red candle. The price found support on the daily chart wedge support but judging by the momentum and the fact that the horizontal levels got broken and the price stayed below it for nine days we are going to see anothe breakout to the downside.
The next horizontal support level I see strong enough to hold the momentum behind the selloff is around $0.0489 probably again on the wedge support which would mark the end of wave Z.