The Decentraland Price is running into resistance at increasing lower levels, suggesting longs are eager to offload MANA tokens.
Like many gaming and metaverse-related cryptocurrencies, Decentraland’s MANA token has flipped from a bull to a bear market over the last month. Similar to The SandBox, Decentraland was one of the better performing cryptos in November, after Facebook rebranded to Meta. Following the announcement, a four-week buying frenzy lifted MANA almost 700% to a record price of $5.900.
At its peak, Decentraland had a $10 billion market cap and was one of the most valuable cryptocurrencies. However, MANA has lost $4 billion in value and now ranks the 28th-largest crypto behind Axie Infinity. Furthermore, the Decentraland price is struggling to turn higher and remains trapped by a descending trend line, which, until cleared, will continue to cap the market.
MANA price Forecast
The daily price chart shows the descending trendline at $3.300, in place from the November high is the first significant resistance level. Above that, the 50-Day Moving Average at $3.553 is the next obstacle for the bulls.
As long as MANA remains below the trend, the path of least resistance is lower towards the 100-DMA at $2.163. Considering the overall weakness of the cryptocurrency market and the size of November’s rally, I expect the bearish scenario to play out.
However, the price should increase if it clears trend resistance and the 50-DMA. On that basis, a daily close above $3.553 invalidates the bearish view.
Decentraland Price Chart (daily)
For more market insights, follow Elliott on Twitter.