On August 14th, Decentraland price hit the upper trendline of an ascending channel it has traded within for weeks. In the session’s late hours, after failing to break to the upside, the prices started a new push to the downside.
Since then, the prices have been in a strong bearish trend, with today’s trading session marking the fifth consecutive trading session that Decentraland price is falling. The recent strong and aggressive bearish trend has seen the crypto losing 23 per cent of its value since the move started.
In today’s trading session, Decentraland is down by 8 per cent. However, the trend also looks aggressively bearish, and there is a high likelihood that we may see prices continuing to drop throughout the session. Today’s price drop comes despite the past 24 hours showing a strong surge in trading volume, which has pushed the total amount to $230 million, 30 per cent above yesterday’s volume.
Decentraland Price Analysis
With today’s Decentraland price falling by 8 per cent and extending the past few four trading sessions that have also been bearish, you would be mistaken to think there are underlying fundamental factors pushing the prices down. However, there is no major news that is specific to Decentraland that may be triggering the drop.
However, looking at the chart below, the drop may have been triggered by the Decentraland price touching the upper trend line of the ascending channel. After failing to break to the upside prices, a bearish trend was triggered, as seen in the current push to the downside, which is almost hitting the lower trendline of the ascending channel. In the next few trading sessions, I expect the prices to fall below the $0.80 price level. There is also a high likelihood we will see prices dropping as far down as the $0.75 price level. My analysis will only be invalidated should the prices trade above yesterday’s opening price of $0.97.