- Decentraland and other altcoin prices retreated sharply on Monday.
- This performance happened as Bitcoin price took a breather.
- On-chain data points to little activity in the ecosystem.
Decentraland MANA price suffered a harsh reversal during the weekend as last week’s rally faded. After soaring to $0.4331 last week, the token dropped to $0.3856 on Monday. Still, it remains about 25% above the lowest point this month.
Crypto rally takes a breather
The main reason why MANA price retreated is that Bitcoin eased after it jumped to the highest level in more than 12 months. After soaring to $31,409, BTC price retreated to about $30,500, as I wrote in this article.
At the same time, there are lingering concerns about Decentraland’s ecosystem as the number of active users dive. Data compiled by DappRadar shows that the network had about 2.4k Unique Active Wallets (UAW) in the past 30 days.
Decentraland handled over 39.27k transactions in the past 30 days while the fiat balance in its ecosystem stands at over $22k. All these are worrying numbers for a blockchain platform that has a market cap of over $725 million.
The reality is that top metaverse projects like Sandbox, Axie Infinity, and Decentraland are seeing little traction among users in the past few months. This performance is mostly because the payouts dropped sharply as the token prices fell.
At the same time, most people are no longer spending most of their times at home as they did during the pandemic. We have seen this performance in other companies that did well during the pandemic like Zoom Video and Peloton.
Read more: How to buy Decentraland.
Decentraland price prediction
Turning to the four-hour chart, we see that the MANA price has been in a slow bullish trend in the past few months. It rose from a low of $0.3087 and reached a high of $0.4339 last week. Now, the token has pulled back and moved slightly below the 23.6% Fibonacci Retracement level.
Decentraland remains above the 100-period and 50-period moving averages (MA). At the same time, the Relative Strength Index (RSI) has moved below the overbought level of 80 to the current 48. Therefore, technically speaking, the outlook of Decentraland price is bullish unless it moves below the 50-day and 100-day moving averages.
More upside will be confirmed if MANA price moves above the month-to-date high of $0.43390. If this happens, the next level to watch will be at $0.50.
