Decentraland is a community-owned virtual world that uses Ethereum blockchain, allowing users to create, monetize and enjoy virtual creations. It was launched in the form of an ICO in 2017, raising $24 million in total funds. Users are taking advantage of this virtual world to create interactive games, 3D simulations, and many unique interactive experiences.
There have been many upgrades, developments, and news surrounding further growth in the last year. After its launch for public use in Feb 2020, Decentraland has witnessed a grown in total active users and the value of its MANA token. Decentraland has a two token system, the first one is MANA, and the second is the LAND.
MANA being an ERC20 token, must be burned to acquire the NFT token LAND. Users can also use their MANA holding to buy avatars, wearables, and other items on the decentraland marketplace. Decentraland MANA is the 35th largest crypto token with a combined market valuation of USD 5.9 billion.
Decentraland Price Analysis
MANA token can be considered the tangible value token of the decentraland ecosystem, which enables users to buy NFT tokens of LAND and various virtual reality items. MANA remained at small trading levels since its release in Feb 2020 but started to skyrocket only in 2021.
MANA token started rising in value in 2021 and went up from $0.025 in Feb 2020 to $0.07 on January 01, 2021. This jump was nothing compared to the 40x jump in the peak buying session of May 2021. MANA, too, succumbed to selling pressure, dropped back to the $0.46 levels, and remained there for two months before finally getting some buying action. Just in the last one week, MANA has spiked, breaking out of its narrow consolidation zone of two months and offering a high return on investment to MANA holders.
The breakout of October 28, 2021, indicated a potential for MANA to retest its previous highs of $1.58 in May 2021. We witnessed a continued buying session on MANA for close to three days, hitting a fresh all-time high of $5. This jump was unprecedented when it happened, but experts were indicating a possibility of further gains. Based on our Decentraland price prediction, MANA can potentially become the top 10 crypto tokens within the next year with the substantial rise in NFT tokens.
RSI has jumped from an average level between 60 to 80, and holding above 70 should be considered an extreme positive buying level. At present, $2.37 has emerged as an immediate support level, while $3.665 is its primary resistance level. Consolidation in this range could give another breakout and substantial up move, but a continued rally would result in a profit booking.