Decentraland (MANA) price analysis 30 November: short-term top?

Decentraland (MANA) is correcting in an uptrend

Logo,screenshot of blockchain nft ethereum cryptocurrency game Decentraland in laptop,mobile phone.Man playing with crypto coins,token MANA                                 
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Decentraland’s MANA token attracted attention after Facebook’s move to rebrand as Meta. Investors perceived the rebranding indicated the social media giant’s desire to focus on the ‘metaverse’, a virtual world where people interact with each other online. 

In a similar way, Decentraland is a platform where investors can buy or sell virtual properties in the form of non-fungible tokens (NFTs). 

According to a recent Reuters report, the Metaverse Group – a subsidiary of Tokens.com – bought a virtual asset measuring 6,090 virtual square feet for 618,000 MANA, which was worth about $2.4m at the time of the transaction. Decentraland said the virtual real-estate deal was the most expensive on the platform.

In a recent report, Grayscale Investments described the metaverse as “estimated to be a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetisation”. 

The report continued: “Compared to other Web 3.0 and Web 2.0 segments, metaverse virtual-world users are still in their early innings, but if current growth rates remain on their current trajectory, this emerging segment has the potential to become mainstream in the coming years.”

Could MANA go up further, or will higher levels attract profit-booking as traders sell the news? Read the MANA price analysis to find out what the charts suggest.

Decentraland (MANA) price technical analysis: daily chart

Decentraland (MANA) technical analysis daily chart
Decentraland (MANA) price technical analysis: daily chart – Credit: Currency.com

MANA’s price has been in a strong uptrend for the past few days. The bulls have not allowed the price to dip below the 20-day exponential moving average (EMA) since the start of the rally on 28 October.

The upsloping moving averages and the relative strength index (RSI) in the positive zone indicate that the bulls are in control.   

If the price rebounds off the current level or the 20-day EMA, the buyers will make one more attempt to push the MANA/USD pair above the all-time high of $5.88. If they succeed, the pair could rally to $8.03.

The first sign of weakness will be a break and close below the 20-day EMA. Such a move will suggest that traders are rushing to the exit. The pair could then drop to the 50-day simple moving average (SMA).

Decentraland (MANA) price technical analysis: four-hour chart

Decentraland (MANA) technical analysis: four-hour chart
Decentraland (MANA) price technical analysis: four-hour chart – Credit: Currency.com

MANA’s price has repeatedly bounced off the 50-SMA in the past few days. However, for the past two days, the bulls have been struggling to push the price back above the 20-day EMA. This suggests a lack of demand at current levels.

The pair has formed a descending triangle pattern, which will complete on a break and close below $4.34. Such a move will suggest that the pair may have topped out in the short term, after which the pair could drop to $3.52.

The flattish 20-EMA and the RSI just below the midpoint suggest that the bullish momentum may be weakening.

This negative view will invalidate if the price turns up from the current level and breaks above the downtrend line. That would invalidate the bearish set-up, after which the pair could rally to $5.21 and thereafter retest the all-time high.

Decentraland: Buy or sell at current levels?

Decentraland’s price analysis shows that traders are booking profits at higher levels. The critical level to watch on the downside is $4.34 because if it cracks, the short-term trend could tilt in favour of the bears. The bulls will gain the upper hand on a break and close above $5.21. 

Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.

Further reading

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