Decentraland Price Faces an Uphill Battle as MANA Mania Fades
The Decentraland price has been punched in the face in the past few days as concerns about interest rates remain. MANA, its native token, is trading at $3.10, which is about 50% below the highest level in 2021. Its total market capitalization has crashed to about $4.1 billion, making it the 41st biggest cryptocurrency in the world.
Decentraland is one of the biggest metaverse cryptocurrencies in the world. The platform enables people to play virtual games and even buy virtual goods like plots and other products. In 2021, as the industry took off, we saw the prices of most items in the ecosystem jump. For example, it was widely reported that a plot of land in the ecosystem was sold for more than $2 million.
Recently, however, fears of the Federal Reserve have pushed the MANA price lower. On Wednesday, Fed minutes showed that the bank was comfortable implementing more hikes this year in its battle against inflation. Therefore, there are worries that this tightening will deflate the metaverse bubble that created last year.
Decentraland price prediction
The daily chart shows that the MANA price has been under intense pressure in the past few months. As a result, the price has moved below the 25-day and 50-day moving averages. A closer look also shows that it has formed a head and shoulders pattern, which is usually a bearish sign.
Therefore, I expect that the Decentraland price will bounce back later this year. In the near term, however, we can’t rule out a situation where the coin crashes below $2. This view will be invalidated if the coin jumps above the right shoulder.
