February 25, 2024

Decentraland is among the major cryptocurrency community metaverse initiatives, but its currency MANA has steadily declined in recent weeks. Following a brief dip below $0.72, the value has risen by 80%. Nevertheless, this surge may be nearing its end, and the cryptocurrency may face rejection in a resistance zone in the next days or weeks.

1-Hour MANA Chart

After acting as a request zone earlier in May, the $1.25-$1.35 range (red box) represents a longer-term supply zone for MANA. Despite a massive surge over the last few days, MANA’s longer-term economic structure stays bearish.

The last time MANA traded for less than $1.30 per share was in October last year. Prices being pushed below this level by sellers signals that a rebound is unlikely soon, and additional declines can’t be ruled out in the next weeks and months.

There is ample proof that MANA was driven to the $1.3 zone by massive buying activity on the shorter timeframes. It, nevertheless, doesn’t imply a purchasing chance but rather a selling or shorting opportunity.

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The signal line (orange) and MACD (blue) were higher than zero to indicate a buy signal. Nevertheless, the MACD posted a lower high in the last 24 hours while the pricing made a greater high. It’s a bearish divergence with added significance because it occurred immediately beneath a support area.

After the roughly 80% pump from the $0.7 lows a few days ago, the DMI exhibited a strong bullish trend in progress. Similarly, the OBV has risen and broken the previous downtrend.

The indicators indicated significant positive momentum and market behind MANA, but a negative divergence hinted at a possible drop. MANA could retest the $1 support level in response to such a decline. Depending on BTC’s path, the coin could continue to fall below $1 or find new demand and rise back to $1.3.

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Is Decentraland Underwater?

Since June last year, this is the first time that the Metaverse token has fallen thus far into the oversold zone. It was a strong indicator that MANA would most likely rebound from this point forward. The pressure release that caused the month-long selling pressure remains active, but the upsurge of the RSI from the oversold area is a sign.

Furthermore, the white dots on the Parabolic SAR are so near to the candlesticks that a rise is all but certain. Investors may not be relieved, but it will at least give the company’s dwindling profitability some hope for the future.

After peaking at over $75,000 in November 2021, the average account balance is now down to only $15,000—the lowest level since the first introduced statistic. Small investors were sure to be turned off by this, just like the whales were.

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These whales deal for $7M to $10M a day despite controlling 53.03% (1.31B MANA) of the whole MANA market capitalization. Decentraland, on the other hand, is constantly bolstering its attempts to make MANA the primary challenger in the metaverse sector by eradicating any prospective danger to the network.

On March 12th, for example, a security researcher discovered a significant weakness in the LAND smart contracts. A hacker might have transferred a LAND without the LAND owner’s approval if they had accessed the same. Within 2 hours, the flaw had been repaired, demonstrating Decentraland’s dedication to the security of its investors. It can boost Metaverse sales, although they may not be at their finest.

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