MANA ON A SHORT-TERM DOWNTREND SINCE ITS ATH TWO WEEKS AGO
Over the past two weeks, since its all-time high price of $5.90 recorded on the 25th of November to be exact, the Decentraland’s token MANA (MANA/USDT) has been on a Downtrend losing more than 43% of its dollar value so far. Originally, we had been planning to cover some other digital world blockchain as part of our Weekly Metaverse Series, namely GALA (GALA/USDT), but as soon as we noticed how low the current price of MANA was sitting, we immediately decided that the main focus should be on the Decentraland’s native cryptocurrency this week.
At the time of writing this article, the coin is trading for approximately $3.30 and it seems like it might possibly be losing its previously reliable support around the $3.40 mark, which formerly acted as strong resistance at the very beginning of November as well as over the period of nearly seven days between the 12th and the 18th of this past month. This $3.40 area is being additionally strengthened by the presence of the 50-day Exponential Moving Average right beneath. Thus, we could reasonably expect the coin’s value to hold in the coming days, provided that Bitcoin doesn’t experience another pullback of course, and either continue trading sideways for a while, as it has for nearly a week now, or start a little rally to the upside with an eye on testing the next important resistance around the $3.80 mark.
Since the ongoing pullback went under way, the trading volume has diminished rather significantly, which might point to possible exhaustion of the selling pressure. That would definitely be a good sign for the immediate future direction of MANA’s price action, especially considering the fact that the token spent 99% of its existence (up until Facebook’s rebrand to META at the end of October, obviously) trading below $1.50, which means there is always this red flag present in the form of early investors who bought in the asset really cheap, and could decide to take profits at any point, whenever they wish to do so.
However, judging by the said low volumes, a large portion of these investors must also be believers in the project, or at least believers in much higher prices that they could potentially see for their virtual world cryptocurrency in the long run. Speaking of long-term potential…
GREYSCALE’S METAVERSE REPORT SUGGESTS SKY-HIGH POSSIBILITIES FOR THE FUTURE
On the 26th of November, Greyscale, one of the leading crypto asset managers, released a report named ‘The Metaverse. Web 3.0 Virtual Cloud Economies’, which analysed a potential market cap of the virtual world industry in the future. The most important conclusion was that the metaverse could become a $1 trillion business opportunity in the coming years.
The said piece of research also stated that, in all likelihood, it would be the gaming industry within the Metaverse trend, with projects such as Decentraland, The Sandbox, Axie Infinity and others, that would be at the forefront of this revolution. In case you forgot, Greyscale offers a plethora of crypto investment products, and one of them is ‘Greyscale Decentraland Trust’, which was created on the 26th of February and is currently worth $64 million.
If you presently are looking for an optimal entry price, there are a couple of ideas you might want to consider. First of all, the Decentraland’s native token is trading at $3.30, therefore, if you don’t feel like waiting for a better price, then buying in now might not turn out to be the worst decision. The price action could easily bounce off the 50-day EMA and get above $3.40 to re-establish that level as support.
Another option is to wait for MANA to break above $3.40 first, then wait for a confirmation in the form of a few hourly or four-hourly candle-closes above it, and then enter. You would be investing in the hottest asset class in crypto on a long-term Uptrend after a 40%+ correction. If patience is one of your virtues, you might decide to wait to get in even lower, at $3.00 or even $2.50, which might seem like distant levels at the moment, but if Bitcoin keeps on correcting, we could see these kinds of prices sooner rather than later.
Whatever decision you end up making, if you are in this, as we are, for the long-run, you shouldn’t lose money investing in MANA, as it is one of the most promising projects belonging to the futuristic Metaverse trend. And always do your own research, plus we always recommend dollar-cost averaging down when entering any market. Stay safe in these volatile markets!
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
