The Decentraland price has been under intense pressure in the past few months. The MANA price is trading at $2.08, which is about 65% below its all-time high. Its total market cap has retreated to about $3.1 billion, making it the 40th biggest cryptocurrency in the world.
Decentraland is a leading blockchain project that is in the metaverse and gaming industry. The platform allows anyone to play virtual games and then win rewards. At the same time, Decentraland has features that enable developers to buy virtual property.
As a result, the MANA price jumped sharply in 2021 as investors embraced the new trend of the metaverse. Besides, companies like Nvidia, Facebook, and Microsoft have embraced the technology.
However, recently, investors have grown cautious about the metaverse industry. Indeed, the price of most metaverse coins like Decentraland, Sandbox, Axie Infinity, Gala, Enjin, and even My Neighbor Alice have all crashed by double digits.
The decline is mostly because investors are worried about the impact of higher interest rates on the metaverse. In its interest rate statement this week, the Fed hinted that it will likely continue tightening its policy in its battle against inflation.
The four-hour chart shows that the MANA price has been in a strong bearish trend in the past few months. The coin has already crashed by over 65% from its all-time high. A closer look shows that the coin dropped below the important support shown in green.
This week, the Decentraland price attempted to recover but failed after the FOMC decision. Now, it has formed a break and retest patten, which happens when the coin retests an important level. In most cases, a break and retest is usually a bearish signal.
Therefore, there is a likelihood that the MANA price will continue falling as bears target the next key support at $1.7172, which was the lowest level on Saturday.
This post was last modified on Jan 27, 2022, 06:49 GMT 06:49