Metaverse and blockchain gaming tokens have been hit hard in the recent crypto slump. Decentraland (MANA) is not any different. The token has seen a sharp decline, and even though it has been rallying in recent days, MANA is still not yet out of the woods. Here are some highlights:
At the time of writing, the coin was up by nearly 10% in 24 hours, trading at around $2.06
But indicators still remain bearish and in fact, the recent gains will slip away as MANA is expected to dip towards $1.46.
However, we are watching to see how long the price can sustain above the next support level of $1.92.
Data Source: Tradingview.com
Decentraland (MANA) – Bear pressure still remains
The key in the recent price action is the 200-day simple moving average of $1.92. Yes, MANA is right now trading above this. However, due to recent volatility in the broader crypto, it is highly unlikely that the metaverse token will sustain gains well above that threshold.
If anything, analysts expect it to slide past $1.92 and find the next support of $1.46. This will represent a 28% wipeout compared to prices today.
If the coin fails to consolidate at $1.46, bears will target $1.01 in what will be a sharp fall for the token. But all this depends on how well sentiment picks up in crypto in the coming days.
Why you should still buy Decentraland (MANA)
Metaverse tokens will heat up in 2022 and beyond. We expect more and more such tokens to come out but no doubt, Decentraland, and a few others remain key pioneers in this space.
It’s therefore a decent coin to own. But we have always felt that these tokens are overpriced. The recent crypto correction offers the perfect chance for fair pricing and for investors to indeed buy in.