The Decentraland price has been under intense pressure in the past few weeks even as activity in its network holds steady. MANA, its native token, is trading at $2.90, which is about 52% below the highest level in December.
Metaverse pullback
Decentraland is one of the biggest players in the metaverse industry. It is a blockchain platform that enables people to play games and invest in virtual property.
In the past few months, the number of people buying virtual property in its network has been rising. In 2021, it was reported that a person had bought a plot of land in Decentraland for over $2.4 million. Even today, a closer look at some of the virtual properties on sale shows that their prices are in the thousands of dollars.
And now, big brands are acquiring space in this virtual land. Recently, it was announced that Samsung Electronics had acquired a virtual version of its flagship 837 store in Decentraland. The virtual store, which will be known as Samsung 837x will be open for a short period and offer digital adventures.
Another big announcement was that the Australia Open too was partnering with Decentraland. The event will be streamed in the Decentraland ecosystem where there will be over 6,776 non-fungible tokens (NFTs) on sale.
Analysts believe that the future of Decentraland and other metaverse projects will come from partnering with big brands. Already, companies like Disney, Gucci, and Nike have expressed interest in partnering with metaverse projects.
However, while activity in the network is rising, the Decentraland price has struggled. It is not alone. In the past few weeks, the prices of most metaverse coins like Sandbox, Axie Infinity, and Gala have all tumbled. This decline is partly because there are questions about whether virtual products will do well in a high interest environment.
Decentraland price prediction
The daily chart shows that the MANA price has been under intense pressure recently as its price has lost about 55% of its total value. A quick look at the chart shows that the coin has formed a head and shoulders pattern, which is usually a bearish sign. It is currently slightly above the neckline of this pattern.
Also, the Decentraland price has fallen below the 25-day and 50-day moving averages, which have formed a mini death cross pattern. This pattern is also a bearish sign.
Therefore, there is a likelihood that the coin will have a bearish breakout in the near term, with the next key support being at $2.
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