The Decentraland MANA price has struggled in the past few months as momentum in the metaverse has faded. The token has dropped to $2.37, 60% below its all-time high. As a result, its market cap has dropped to about $3.60 billion, making it the 41st biggest cryptocurrency in the world. It sits slightly above Sandbox, which is valued at $3.51 billion.
Why has Decentraland lost touch?
Decentraland is a leading metaverse project that enables people to buy and build their budding virtual property. In addition, it is possible for companies to buy property in the network and see their value rise. Some of the top brands that have adopted its platform are fashion giants like Tommy Hilfiger and Imitation of Christ, among others.
Decentraland recently made headlines when it hosted its first metaverse fashion event that attracted showcases by leading brands in the industry like Perry Ellis, Dolce & Gabbana, and Hogan, among others. However, being the first such event ever, it was not perfect. According to Vogue, the whole experience was ‘frustratingly glitchy and lag heavy. Therefore, analysts expect that future events will be significantly better.
MANA price has dropped sharply for a number of reasons. First the hype that existed a few months ago. We no longer hear people spend millions of dollars on plots, as happened last year. Second, the recent hack in Axie Infinity has pushed some people away from the metaverse. And finally, there are concerns about whether the metaverse industry will do well as the Fed embraces a more hawkish tone. Another reason is that competition is rising, with platforms like Sandbox, Gala, and Axie seeking to gain market share.
MANA price prediction
Turning to the daily chart, the first thing someone sees is that the MANA price has been in a tight range in the past few days. However, a closer look shows that it has formed what looks like a symmetrical triangle pattern. This pattern is slowly nearing its confluence zone, meaning that the coin will likely have a breakout soon.
Therefore, the outlook for the Decentraland price is bearish, with the next key support level being at $2.0, which is about 10% below the current level. A move above the resistance at $2.6 will invalidate the bearish view.