- MANA has lost approximately 70% of its ATH.
- The asset’s market capitalization has dipped to around $2.4 billion.
- Should you buy or sell the metaverse coin? Here is our view.
Decentraland (MANA) witnessed bearishness within the last few months as the crypto industry sees fading momentum. The metaverse coin trades around $1.87, its lowest level since 29 October 2021. Meanwhile, MANA lost nearly 70% of its value since hitting its ATH.
Decentraland is among the top blockchain projects in the non-fungible token and metaverse industries. It is an ETH-based network that allows customers to play decentralized games. Gamers win rewards. Moreover, Platform users can also purchase digital real estate in the ecosystem. The platform utilizes MANA as its native coin.
Nevertheless, virtual land price in the platform has recorded massive uptrends within the past months. In 2021, a Decentraland client bought a virtual land that cost more than $2.4 million. However, MANA’s price struggled recently due to various reasons.
First and foremost, the platform has seen increased competition in the industry. Decentraland has multiple competitors, including Sandbox, My Neighbor Alice and Axie Infinity. That seems to threaten MANA’s market share.
Secondly, MANA price dipped due to interest rates worries. The Fed Reserve appears dedicated to boosting interest rates this year. That leaves market participants worried about whether digital real estate will see demand amid rising rates. Remember, the physical property has lagged whenever Fed hikes interest rates.
Thirdly, MANA price weakened due to increasing fears that many nations may issue a complete cryptocurrency ban. The central bank of Russia urged the government to ban crypto undertakings last week. That may mean joining China, which suspended crypto in 2021. Furthermore, India considered banning the asset class.
MANA Price Forecast
The daily chart indicates MANA rode massive bearish waves within the past sessions. The metaverse token plunged under 61.8% FIB retracement mark. Also, MANA dropped under the 25- and 200-day MAs. Moreover, the Relative Strength Index maintained a bearish outlook.
That way, MANA might keep declining as bears await the upcoming decision from Fed. The bank will unveil its decision this Wednesday. Analysts believe market participants need to wait before any actions on MANA token, anticipating directional trends before this weekend.
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