Decentraland (MANA) Price Setting Back Its Recovery Path: New ATH?
Most cryptocurrencies are facing a drop in the crypto market, causing significant pressure. Bitcoin price, commonly viewed as an indicator of the market, has decreased by around 3%, pulling the wider market down with it. Ethereum, the second largest digital currency by market capitalization also follows suit. As investors carefully monitor the market, Decentraland (MANA) token is displaying resilience, preparing to begin a price recovery journey. Let’s delve into the analysis of MANA, its potential to achieve a new all-time high (ATH).
Understanding Decentraland (MANA)
MANA is a native token of Decentraland, an Ethereum-based decentralized virtual reality platform. It enables users to develop, experiment and earn from their content. Users buy virtual land plots as NFTs with MANA tokens. MANA is the platform’s official ERC-20 currency used to purchase LAND, in-game items, and services. It must be burned to acquire ERC-721 LAND tokens and can be used for avatars and wearables. MANA holders have voting rights in Decentraland DAO. It can be bought on exchanges or from the Decentraland Marketplace by selling collectibles.
Market Performance of Decentraland (MANA)
MANA is trading at $0.2954, showing a 4.84% decline in value in the past day. This follows a bearish trade in a broader timeframe, with the token experiencing a drop of 12.98%, and 32.08% over the week and month respectively.
Although the Decentraland token had recently moved out of top 100 largest cryptocurrencies, it has regained its position ranking 97th, with a market cap of $563.72 million.
The trading volume has also increased by 10% to reach $49.2 over the past 24 hours, demonstrating heightened market activity.
The coin is yet to achieve its previous all-time high of $5.90 it reached 3 years ago, but has since dropped by 95.04%.
MANA Price Analysis
The EMA values for various time frames all indicate a sell signal, as prices are currently below these moving averages. The continuous sell indication from the short-term to long-term EMAs indicates that MANA is undergoing a decrease in momentum.
The MACD, another crucial signal, also confirms a negative perspective. The sell signal is confirmed with a MACD level of -0.02, suggesting that negative momentum persists and the price will likely keep falling unless there is a notable increase in buying activity.
However, the RSI, which stands at 34.29 at the moment, is situated in a neutral zone, albeit near the oversold limit of 30. This implies that though MANA is not already oversold, it is close to being so, suggesting a possible comeback if buyers begin to participate in the market. Nevertheless, the RSI currently does not offer a powerful buying indication.
The pivot point stands at 0.38, with support levels at 0.27 and 0.19, and resistance levels at 0.45 and 0.56. The present price movement around the pivot and support levels indicates that MANA might encounter difficulties surpassing the resistance zones soon.
Conclusion
Hence, although the general technical signs suggest a downtrend for Decentraland (MANA), the RSI approaching oversold levels offers a small chance for a potential rebound. Yet, with the EMAs and MACD showing strong sell signals, it seems unlikely that MANA will reach a new all-time high soon unless market dynamics change significantly.
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