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- 1 The bulls are confronting bears on a support level after being rejected at the resistance for the MANA coin price.
- 2 To engage with Decentraland, users need to hold MANA tokens within an Ethereum wallet.
- 3 Although the MANA coin has gained 40% year-to-date, it struggled to keep up.
Decentraland is a virtual world for buying, selling, and exploring digital real estate, with interactive apps, in-world payments, and peer-to-peer communication. There are two types of tokens in Decentraland that govern operations. The first is LAND, which is a non-fungible token (NFT) that represents ownership of land parcels. The second is MANA, a cryptocurrency that facilitates purchases of LAND and virtual goods and services within the platform.
Working of Decentraland
Decentraland uses the Ethereum blockchain to track ownership of digital land defined by LAND tokens. To engage with the platform, users need to hold MANA tokens within an Ethereum wallet. The Decentraland application is built using Ethereum smart contracts. The consensus layer maintains a ledger that tracks the ownership of land parcels, and the content layer controls what happens within each parcel. This includes content files, script files, and interaction definitions.
Moreover, Decentraland also has a marketplace and builder tools. The marketplace allows participants to manage and exchange LAND tokens and in-game items such as wearables and unique names.
All transactions are settled between Ethereum wallets verified by Ethereum’s network and logged on its blockchain. The builder tools enable owners to curate a unique experience within their LAND parcels using editing tools to design interactive scenes.
Prediction of MANA Coin Price
In the three quarters of 2023, Decentraland cryptocurrency faced some challenges, unlike Bitcoin which recorded an increase of 120%. Although the MANA coin has gained 47% year-to-date, it struggled to keep up. However, the fourth quarter brought some relief to Decentraland.
At press time, the MANA coin price is trading at $0.4162, and its value has increased since mid-October. The bulls’ resistance level is at $0.5060, while the immediate support level is at $0.4058, which the bulls have regained at a shallow level.
The 50-day EMA which is at $0.3787 has made a bullish crossover with the 150-day EMA which is at $0.3743.
A few days ago, the RSI went into an overbought territory with a level of 78 but it’s now at 53 which suggests that the bulls have turned weak in the recent trading sessions. It’s predicted that the price of MANA coin will remain bullish until it reaches its next resistance level.
Conclusion
Decentraland uses the Ethereum blockchain to track ownership of virtual land defined by LAND tokens. To engage with the platform, users need to hold MANA tokens within an Ethereum wallet. MANA coin gained 47% year-to-date. The current price is at the support level while the moving averages signal a buy.
Technical Levels
- Support Levels: $0.4052 and $0.3012
- Resistance Levels: $0.5060 and $0.6541
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.