An analysis by Kraken, one of the largest cryptocurrency exchanges, shows that Decentraland is outperforming the markets. The research is based on year-on-year data, where Decentraland was also compared with other metaverse projects such as the Sandbox and the Metaverse Sector.
However, despite outperforming the markets, Decentraland’s price has continuously plummeted throughout the year. This month, the price of crypto has dropped by 22 per cent. The month of May also had a strong bearish trend that resulted in the crypto losing 24 per cent of its value. April price drop was even larger, with Decentral and recording a drop in price of 45 per cent.
Part of why we have seen an aggressive downward trend for Decentraland is due to the current bear market in the cryptocurrency industry. In May, a cryptocurrency market crash also resulted in aggressive bearish moves for almost all cryptos.
Therefore, despite the recent progress Decentraland has made, which in normal times would have seen its price in the markets rise, the global bear market trend has continuously pushed MANA down.
Decentraland Price Prediction
The past six days have seen Decentraland trading sideways, with most trading sessions alternating between the bull and bear trend. Today, the price is down by 9 per cent after yesterday’s strong showing that resulted in an 8 per cent price surge. The session is also looking very aggressive; hence, we might see the prices push downward further and close lower.
Therefore, based on the price action of the past one week, my Decentraland price prediction expects the prices to recover tomorrow. I expect the sideways market to continue, with a likelihood of a bullish trend tomorrow that will wipe out today’s losses. However, in the long-term, I expect the resumption of the strong bearish trend that has seen prices drop by 22 per cent this month. As a result, there is a high likelihood that the prices will hit the $0.63 support level and trade below it.
However, should the prices trade above $1, then my analysis will be invalidated. It will also mean a possible upward price reversal.
Decentraland Daily Chart
