Decentraland is down by 3 per cent in today’s trading session, extending the long-term bearish trend that has dominated the markets throughout the month, resulting in its value falling by 42 per cent since the start of November. Today’s price drop also comes amidst a downturn in the crypto industry.
Recap of Problems Facing Decentraland
Decentraland has been faced with a myriad of challenges throughout the year, which have impacted its growth. In early October, the company was forced to address a report that they only had 38 daily active users despite having a valuation of over a billion dollars. Although they were able to provide evidence that the data might have been biased and the information provided was not true, the damage done has lasted for the past few months.
The collapse of the FTX crypto exchange also saw the token’s value drop by more than 30 per cent in less than 48 hours between November 8 and 10. Since then, Decentraland has been unable to recover and has extended its drop in value to more than 40 per cent. Its significant correlation with the industry has also played a major role in the current bear market of the crypto industry.
Decentraland Price Prediction
As seen above, many fundamental factors have negatively impacted the growth of Decentraland in the past few months. Unfortunately, these factors are still playing a part in today’s Decentraland price action and are likely to last for the long term.
Therefore, my analysis, based on these fundamental factors only, indicates that we might continue to see Decentraland price continuing to drop for the next few trading sessions. There is a high likelihood that Decentland will be trading below the $0.30 price level in the next few trading sessions. However, a trade above the $0.45 price level will invalidate my bear analysis.