- The Decentraland MANA price has made a strong recovery.
- The coin has formed a long-legged doji pattern on the 4H chart.
The Decentraland MANA price has made a spectacular recovery after it formed a morning star pattern during last week’s sell-off. The coin is trading at $1.2260, which is about 101% above the lowest level last week. Its current market cap stands at $1.8 billion, making it the 41st biggest coin in the world.
Why has Decentraland bounced back?
Decentraland is a leading blockchain project that is in the metaverse and gaming industry. It is one of the biggest platforms in the industry.
The platform has many features. For example, it has features that allow people to play all type of virtual games in the metaverse industry.
Further, the platform has features that let people buy and equip their virtual property. Indeed, in the past few months, many people have spent thousands of dollars acquiring this virtual property.
At the same time, the platform has vast NFT features where people can buy avatars and other products. People have spent billions of dollars buying NFT products in its ecosystem.
In the past few months, Decentraland has also taken part in the virtual event industry. For example, it held a virtual fashion event that attracted some of the biggest events in the world. Find out how to buy Decentraland.
Like other cryptocurrencies, the MANA price has been in a sharp downward trend as concerns about high interest rates remain. The Fed has already hiked interest rates by 0.75% and there are concerns that it will continue with its aggressive rate hike.
As such, there are concerns about whether virtual assets in Decentraland will continue having more demand when rates rise.
The Decentraland price has declined because of the recent crash of Terra LUNA, Terra USD, and DEI. Analysts now believe that other cryptocurrencies could suffer the same fate.
MANA price prediction
The daily chart shows that the MANA price crashed hard last week. It then formed a morning star pattern, which is usually a bullish sign. After that, the coin moved sharply higher and is now trading at $1.2230. The coin remained below the 25-day and 50-day moving averages.
A closer look shows that the coin has formed a long-legged doji pattern, which is usually a bearish sign. The Relative Strength Index has moved to the neutral level at 50. Therefore, the coin will maintain the bearish trend as long as the coin is below the 25-day and 50-day moving averages.
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