The Decentraland (MANA/USD) price has been in a strong bearish trend in the past few months as momentum in the industry wanes. It is trading at $1.87, which is the lowest it has been since October 29th. It has fallen by almost 70% from its all-time high.
The fall of a giant
Decentraland is a leading blockchain project that is at the intersection of the metaverse and the non-fungible token (NFT) industries.
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It is an Ethereum-built platform that enables users to play decentralized games and earn rewards. Users in the platform can also buy virtual real estate and build them. MANA is the native token for the ecosystem.
In the past few months, the price of the virtual land in the network has been in a strong upward trend. In 2021, a person paid over $2.4 million for a plot of virtual land in the network.
Recently, the Decentraland price has struggled for several reasons. First, there are concerns about competition in the industry. Today, Decentraland has a number of competitors, who include The Sandbox, Axie Infinity, and My Neighbor Alice. As such, there are concerns about its market share.
Second, MANA price has fallen because of worries of interest rates. The Fed has already committed to boost interest rates a number of times this year. Therefore, there are concerns about whether the virtual property will see more demand as rates rise. Historically, physical property tends to lag in a period when the Fed is hiking interest rates.
Third. Decentraland price has weakened because of the rising fears that more countries will issue an outright ban of cryptocurrencies. Last week, the Bank of Russia recommended that the government should ban the currencies.
If this happens, Russia will become the next country after China to ban them. India is also considering banning the coins.
Decentraland price prediction
The daily chart shows that the MANA price has been in a strong bearish trend in the past few months. The coin has managed to drop below the 61.8% Fibonacci Retracement level. It has also moved below the 25-day and even the 200-day moving averages while the Relative Strength Index (RSI) has been in a bearish trend.
Therefore, there is a likelihood that the Decentraland price will keep falling as bears wait for the upcoming Fed interest rate decision. The bank will deliver its decision on Wednesday.
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Source: https://invezz.com/news/2022/01/24/decentraland-price-prediction-buy-the-dip-vs-sell-the-rip/