The intraday drop on the MANA/USDT pair has upped bearish Decentraland price predictions. The evolving pattern on the daily chart is that of a bearish pennant, making it likely for the MANA/USDT pair to continue the corrective decline if the pattern is confirmed.
2022 could be the big year for the Metaverse tokens. However, the correction seen in MANA and other crypto gaming tokens tied to the Metaverse is not surprising. Facebook’s rebranding mostly drove the price increases seen in early November to Meta and not due to fundamentals. These fundamentals will likely kick in in the first half of 2022, especially as the token has started attracting institutional interest.
Grayscale has launched a Decentraland Trust fund, a mono-product (MANA) fund for high net-worth investors and institutions. A further price dip could attract more accumulation, and the Decentraland price prediction is for the price to head further to a cheaper accumulation level before any further potential increases.
Decentraland Price Prediction
The daily chart shows an evolving bearish pennant, with the price candle of the day pushing hard at the lower border of the pennant. A breakdown of this pattern opens the door to a measure move that could extend towards the 2.4881 price mark (11 November and 4 December lows). The bears need to take the 3.4632 and 3.1190 support levels if this move is to come to fruition.
On the other hand, a bounce off the pennant’s lower border, which translates into an upside move that breaks the 4.3581 resistance level, negates the pattern’s outlook. This also opens the door for the bulls to aim for the 4.9586 resistance (30 October/30 November highs). Continuation of this upside move will bring 5.4912 into the picture, with the all-time high at 5.9000 also lurking close by.
MANA/USDT: Daily Chart
Follow Eno on Twitter.