Decentraland's (MANA) price is at the most oversold level in history. According to the stochastic oscillator, MANA is extremely oversold. After the recent crash, both the short-term MA and long-term MA of the stochastic indicator are at the 0 reading.
Stochastic Oversold Reading
While the Stochastic oversold reading may, in fact, signal a reversal and provide us with a rare opportunity, the danger is that MANA's price can settle inside a consolidation to allow the Stochastic indicator to come out of these extreme oversold readings.
The dip below the $1.00 psychological number was short-lived, but we're not out of the woods just yet.
Most Relative Strength Index (RSI) oscillator readings are below the 50-mid level on the daily and weekly chart, signaling bearishness.
For a shift in the sentiment, we would need the RSI momentum to break above the 50 mid-level in both time frames.
The last two times the RSI broke below the 50 mid-level, MANA's price bottomed out, and a "V" shape bottom was put in place. Also, the strong bounce from below $1.00 makes it look like we're in the process of establishing a new "V" shape bottom.
However, the current weekly RSI reading is the lowest since November 2019, which can stand in the way of a possible reversal.
Looking forward: MANA's price can settle in a wide range between $1.54 and $0.35.
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