Decentraland is at the Most Oversold Levels in History

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.