Decentraland (MANA) has increased more than two times since the beginning of January 2023, rising from a low of $0.28 to a high of $0.84. But where is the price of MANA going next, and what can we expect from March 2023?
The current price of MANA stands at $0.68, and for now, bulls continue to control the price movement. Today, Crypto Lists will discuss MANA price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Decentraland is an Ethereum-based virtual world platform
- 2 Where is MANA headed?
- 3 Technical analysis for Decentraland (MANA)
- 4 Important support & resistance levels for Decentraland (MANA)
- 5 What speaks for the rise in the Decentraland (MANA) price?
- 6 What indicates the downfall for Decentraland (MANA)?
- 7 What do analysts and experts say?
Decentraland is an Ethereum-based virtual world platform
Decentraland is an Ethereum-based blockchain platform that allows its users to buy and sell digital real estate while exploring, interacting, and playing games within this virtual world. Using the simple Builder tool, users can also create games, artworks, scenes, challenges and create a profitable business within the Decentraland world.
It is important to say that there are two different types of tokens that govern operations in Decentraland, and they are LAND and MANA. LAND is a non-fungible token (NFT) that defines the ownership of land parcels representing digital real estate, while MANA facilitates purchases of LAND, as well as virtual goods and services used in Decentraland.
MANA tokens allow users to interact with other users, and by owning MANA, users have the ability to vote on policy updates, LAND auctions, and subsidies to improve the platform. The Decentraland application tracks real estate parcels defined by LAND tokens, and it requires users to hold its MANA token within an Ethereum wallet to engage with its ecosystem.
The Decentraland ecosystem is interesting for everybody that looks for a customizable and shared virtual reality space. Decentraland is also very interesting for gamers seeking to earn currency, which could be exchanged for real-life goods and services.
The popularity of Decentraland is rising, and it is essential to mention that even the world’s oldest auction house Sotheby’s, opened a virtual gallery in Decentraland. Michael Bouhanna, Specialist and Head of Sales at Sotheby’s, said that he sees Decentraland as the next frontier for digital art where artists, collectors, and viewers alike can engage with one another from anywhere in the world.
Where is MANA headed?
The virtual reality world should grow significantly over the next few years, but the success of Decentraland and MANA also depends on the competitors’ moves. The beginning of the 2023 year has been very successful for MANA, and the price of this crypto has more than doubled in value since January 2023. Despite this, investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain, capping any upside potential in the short term.
The US central bank is widely expected to raise interest rates at its meeting in March, but the main question still remains how many more rate hikes will there be, and how long will interest rates be held at the restrictive terminal level?
Many analysts are warning that Fed will hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets again. The European Central Bank also reported that it is not nearly done with efforts to bring down inflation, and traders should keep in mind that the crypto selloffs could gather speed if Bitcoin falls below the $20,000 mark again.
For now, bulls continue to control the price movement of MANA, but the highly volatile nature of the cryptocurrencies may scare investors again to sell MANA if a significant decline happens in the cryptocurrency market.
Technical analysis for Decentraland (MANA)
The price of Decentraland (MANA) has increased more than two times since the beginning of January 2023, rising from a low of $0.28 to a high of $0.84. The current price of MANA stands at $0.68, and as long the price of MANA is above $0.60, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Decentraland (MANA)
On this chart (the period from June 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Despite the recent correction, MANA remains in a “buy” zone, and if the price advances above $0.90, the next target could be important resistance that stands at $1. The important support level is $0.60, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.50. If the price drops below $0.50, which represents very strong support, the next target could be located around $0.40 or even below.
What speaks for the rise in the Decentraland (MANA) price?
The amount of MANA traded over the last several weeks saw a significant increase, and if the price advances above the resistance that stands at $0.90, the next target could be important resistance at $1. Traders are accumulating MANA despite the expectations of “some market turbulence,” and according to the technical picture, MANA still has room for the upside. Fundamentally looking, if the popularity of the platform continues to grow at the same pace as in the last two years, the price of MANA could increase above the current levels.
Traders should also consider that the price of MANA is usually correlated with Bitcoin, and if the price of Bitcoin jumps again above $25000, we can see this cryptocurrency at a higher price level than the current price.
What indicates the downfall for Decentraland (MANA)?
MANA has advanced more than 100% since the beginning of January 2023; still, traders should keep in mind that the price can easily return to levels seen in December 2022. The important support level for MANA stands at $0.60, and if the price breaks this level, the next target could be a support level that stands at $0.50. There are fears that the US central bank will maintain its aggressive path of rate hikes, and many analysts expect a global recession that could hit financial markets again.
“Even before a blowout jobs report and data showing still high inflation, some officials were already discussing a 50 basis points rate hike.”
– Chris Zaccarelli, CIO, Independent Advisor Alliance
What do analysts and experts say?
Decentraland (MANA) made sharp gains at the beginning of the 2023 year, but the main question is, does this cryptocurrency has more bullish strength left? According to technical analysis, the price of MANA could advance even more, but there are obviously macroeconomic factors driving the wider crypto market at the moment. There are fears that the US central bank will maintain its aggressive path of rate hikes which could weigh on stocks and cryptocurrencies again.
S&P Global Market Intelligence Chief Business Economist Chris Williamson said that many prices accelerated again, and this could encourage a further aggressive tightening of Federal Reserve policy despite rising recession risks. The US central bank will have its meeting on March 21, and Quincy Krosby, Chief Global Strategist for LPL Financial, said that if inflation continues to climb, there could be enough voting members to push for a 50 basis point move.
Because of this, investors should continue to take a defensive investment approach in the upcoming weeks.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.