Ever since the crypto bear market that started in November 2021, Decentraland officially entered a bear market. Prices fell from a high of around $6 to a low of around $1.7. Despite a comeback that made MANA token double in valuation, prices continued on their downtrend. Today, prices are around $2.59. How could the MANA price continue? Is MANA crypto up soon? The chances of rising prices look bad for the time being. Let's explain why in this MANA price prediction article!
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What is Decentraland MANA?
is a virtual world where users can purchase, trade, and create digital real estate, art, and non-fungible tokens (NFTs). Users can achieve this by playing games and joining different ventures in the virtual world. It runs on the Ethereum blockchain. Two various kinds of tokens oversee progress in Decentraland. These are:
- LAND – A non-fungible token () utilized to determine the purchase of land packages describing digital real estate.
- MANA – A cryptocurrency that allows possession of , as well as virtual assets and assistance applied in Decentraland.
How does Decentraland work?
The concept is created to follow real estate packages specified by LAND tokens. The Ethereum blockchain is used to trace the ownership of this virtual land, and it urges users to provide their MANA tokens within an Ethereum wallet to join its environment.
The order of is split into three zones:
- Consensus layer: A smart contract is utilized to trace land purchase and land content.
- Land content layer: To provide content, a decentralized administration method is applied.
- Real-time layer: Enables users to communicate with one another through peer-to-peer relationships.
Is Decentraland MANA Price down?
Well, compared to the highs of November 2021, all cryptocurrencies are down. But if we want to analyze MANA price for the short-term, we can definitely spot an interesting formation.
Decentraland price has formed a trend line during the current downtrend, which has led to falling prices. This trend line was tested for the fourth time recently. Today, prices are looking rather bearish, which makes us doubt that the price will break the trendline in a bullish manner. Instead, we assume that the price will fall again. That's why we assume that prices will fall in the short term.
MANA Price Prediction: How far will MANA Price go down?
Should Decentraland price drop from now on, which we expect, we should see prices reach at least $2.50. That is where the first sub-support is, and where Decentraland price could find buyers. If the price breaks this support, we will anticipate the price to drop further towards $2.21. There is slightly stronger support there than the $2.50 support. Because of this, we also assume that the price will not fall below $2.50, and should reverse upwards.
For that specific case, we strongly recommend placing stop-loss areas slightly below $2.21 depending on the risk appetite of each trader. More info on risk management here.