- Decentraland is a leading metaverse platform.
- MANA has crashed by 85% from its all-time high.
Decentraland’s MANA price has been in a sharp freefall in the past few months as demand for the metaverse dries up. The coin fell to a multi-month low of $0.7434 on Monday as cryptocurrency prices nosedived. It has now pulled back a bit to the current $0.8270.
Metaverse demand sinks
Decentraland is one of the best-known metaverse projects globally. It is a leading platform where people meet, play games, and buy virtual products such as land and NFTs. At its peak, Decentraland was one of the biggest cryptocurrencies around. MANA is the native currency for the platform.
Decentraland price has been in a steep freefall in the past few months. It has fallen from an all-time high of $5.9 in November last year to the current $0.84. This means that its investors have lost billions of dollars in the coin.
There are several reasons why the MANA crash has happened. The most important one is that investors are pricing in a more hawkish Federal Reserve. The bank has already hiked interest rates by 0.75% this year.
The Federal Open Market Committee (FOMC) will start its meeting this week. While the bank has hinted that it will hike interest rates by 0.50%, some analysts believe that it will deliver a 0.75% hike. If this happens, it will be the biggest increase in decades.
Here’s how to buy Decentraland.
In addition to this week’s hike, analysts believe that the bank will deliver more hikes in the coming months. This means that rates could end the year at around 2.5%, which is seen as the neutral level.
The urgency of more rate hikes comes after the US published strong employment and inflation data. The numbers showed that the country’s unemployment rate remained at a record low while inflation surged to a 40-year high.
MANA price has also crashed as investors worry about the falling number of users in its ecosystem. Data shows that Decentraland’s NFT volume has dropped by 50.2% in the past 30 days while Decentraland wearables has fallen by 36%.
Decentraland MANA price prediction
The daily chart shows that the MANA price declined to a low of $0.6074 on May 13th, which was the lowest level in months. The coin has crashed below the descending trendline that is shown in green. It has crashed below the 25-day and 50-day moving averages.
The outlook of Decentraland’s price will likely keep falling as bears target the next key support at $0.6074, which is about 30% below this price.
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