The MANA cryptocurrency used in Decentraland has clearly seen better days. From its 2017 high of $5.85, MANA has dropped 80% in value in the last 12 months, as shown by the most recent available data.
Presently, a share of MANA can be purchased for as little as $0.4773. Investor confidence has tanked in light of the current market situation, making a comeback for the crypto a little difficult.
As a result, the question arises as to whether MANA has any chance of survival or whether it is a cryptocurrency that has already passed its expiration date.
Tough Road Ahead For MANA
Investors, traders, and would-be buyers should not expect MANA’s current position to work miracles, as the market has turned hostile due to the panic caused by the ongoing FTX disaster
Technically, the token is not doing very well either. Token prices are hovering above the 50 percent Fibonacci retracement line. Furthermore, it has recently experienced a reversal in price action.
The RSI readings, which are currently in the oversold portion of their range, lend credence to this theory. However, the Chaikin Money Flow index is not promising.
The current reading of -0.25 for this indicator suggests that bears are in complete control of the market. The current trading range for the day sits between $0.4566 and $0.7389.
The connection between the token and the Metaverse may have contributed to a number of price-increasing variables. Recently, a parcel of Metaverse land in Decentraland was purchased for $15,585, or approximately 30,000 MANA coins.
Such advancements bring MANA and Decentraland into the limelight, increasing interest in the coin and the protocol.
However, these may be short-term improvements. Despite the developing retreat, the EMA ribbon continues to suggest shorting the currency as the downtrend persists.
Crypto Winter Freezes The Token
As the crypto winter freezes MANA from its tracks, the token’s price can either breach the present support at $0.4566 and fall to a new low of $0.3522, or it can breach the immediate resistance at $0.5287.
However, bulls should defend the $0.4566 support line, as a breach of this line could spark further selling.
Investors and traders in MANA should also monitor the prices of Bitcoin and Ethereum, as MANA has a correlation of 0.98 and 0.94 with the two leading cryptocurrencies, respectively.
When the market rebounds, MANA will follow the performance of the other two cryptocurrencies. But for the time being, bulls should concentrate on consolidation and possibly target the 61.80 Fib level.
MANA total market cap at $946 million on the daily chart | Featured image from Medium, Chart: TradingView.com