The Decentraland price has lost momentum. The MANA price is trading at $2.56, which is about 50% below its highest level last week. According to CoinGecko, it has a market capitalization of more than $3.50 billion.
Metaverse rally fades
Decentraland is a blockchain project that enables people from around the world to engage with each other in a virtual universe. In the ecosystem, people can create their own products and sell them to other users in form of non-fungible tokens (NFT).
Decentraland’s marketplace is a virtual place where people can buy and sell digital products that have been created in the platform. It was launched in 2020 and has seen spectacular growth since then. Decentraland is built using Ethereum’s network.
Decentraland’s virtual real estate project is relatively easy to understand. The number of parcels in the ecosystem is capped at 90,000. The developers also own the common spaces and roads.
This land is getting more expensive. For example, the price of a virtual land that sold for $500 in 2020 is now selling for more than $10,000.
MANA price jumped sharply last week after Facebook announced its major rebrand. The company’s holding company will be known as Meta Platform. Meta is the short-form for metaverse and is one of the fastest-growing industries in the technology sector.
Therefore, blockchain projects with a metaverse component experienced a strong rebound. This happened because investors viewed the announcement by Facebook and Microsoft as a validation that the industry works.
At the same time, analysts believe that Decentraland and others like Axie Infinity are at a pole position in the industry. As such, there is a likelihood that the products will see more user growth.
Decentraland price prediction
The daily chart shows that the MANA price has retreated slightly in the past few days. It has fallen by more than 50% from its highest level last week. Still, it is above its lowest level last week by about 255%.
The coin is above the short and long-term moving averages while the Relative Strength Index (RSI) has moved from the overbought level at 93 to 65.
A closer look also shows that the bearish trend is starting to fade. It also seems like it is a bullish flag pattern.
Therefore, while the Decentraland price is still struggling, there is a possibility that it will soon bounce back. If this happens, the next key level to watch is its all-time high at almost $6.
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