Decentraland Falls Back to the Pre-Breakout Level of Oct 2021!
The depreciating value of the MANA token has been a matter of concern for investors who thought metaverse would be taking over the world. Decentraland had jumped close to 15 times from its initial launched value, like other cryptocurrencies being a new thing, investors were expecting the 100x returns on their investments. However, for fear of missing out like previous hit crypto tokens, investors seem to have taken huge buying positions at higher prices of $4 to $6 since MANA token value jumped from $0.65 to $6.02 within a month.
By February 2022, the prices saw a decline of 66% as they took support from $2 levels with initial signs of replacements, but the sentiment flew down the drain by May 2022. Currently, MANA is trading at $0.833, and investors are either sitting on heavy losses or existing with their losses. Like all markets, cryptocurrencies are also cyclical in nature, and there can be huge profit bookings. If an asset can rise 1000% in a month, then it can surely fall 90% in six months.
Decentraland Price Analysis
Decentraland prices tumble from their all-time high, but on technical fronts taking support from the pre-breakout level seen in October 2021 highlights the uptrend movement in such a short interval as misleading. The project growth rate should determine the potential price elevation, not the other way around.
Decentraland is currently taking support from the flat bottom pattern with lower support of $0.75 and a minor declining angle. The price action near this support level seems to incite some buying sentiment on cryptocurrencies as the trend indicates movement towards both positive and negative axis. MANA’s recent decline from $1.2 to $0.8 indicates a decline of 30% from May highs.
Crypto volumes for MANA have once again risen since 13th June as the volumes resembled that of 7th May 2022. According to our MANA crypto price prediction, a bullish trend for Decentraland can initiate only after a strong consolidation and respecting its immediate support level.
For MANA believers, current prices could be the perfect time to acquire some coins since metaverse is still a long way to go, and given the rise in transaction volumes, prices could soon jump above $2. On the contrary, $0.65 has become an immediate support level, which will dissuade sellers from pushing prices further down below.
Despite its ups and downs, the RSI indicator has been moving above the oversold zones. The relatively upright RSI since the May 07 dip indicates a lot of holding positions that can elevate the prices to new levels with more than 200% gain probability.
