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- Decentraland price is currently down 15% in the last two weeks.
- MANA could fall an additional 30% toward the $0.42 resistance zone.
- Invalidation of the bearish thesis with a surge from a breach above $0.72
]Decentraland price could be on the brink of a much steeper downtrend. After a 2X rally in the winter, an additional 30% decline from today's price would be relatively reasonable.
Decentraland price shows room for decay
Decentraland price is currently on a downward spiral as the Ethereum-based virtual reality token continues to retrace after a 200% rally since January. On February 13th, the token is down 5%, bringing the total loss of value to a 15% reduction in the last two weeks. As the token declines, the technical indicators show room for up to an additional 30% fall in the short term.
Decentraland price currently trades at 0.625. On February 9th, the 8-day exponential moving average crossed over the 21-day simple moving average while prices remained suppressed beneath the indicators. This is a key signal that suggests a change in market behavior, in this case, that the winter rally has come to an end.
A Fibonacci retracement tool surrounding the winter rally from January 1st at 0.28 to the winter high at $0.084 shows a high-affinity landing zone between the $0.55 to $0.40 region. A plunge into the 61.8% FIB level at 0.43 would result in a 30% decrease from MANA's current market value.
MANA/USDT 1-Day Chart
For traders looking to join the volatile swing to the downside, Invalidation of the bearish thesis could be placed above the recently crossed moving averages at $0.72. If the bulls can reconquer the moving averages, Decentraland price would likely be back on pace to rally towards the $1 liquidity zone. The bullish scenario would result in a 55% increase from MANA's current market value.
This video shows how Bitcoin price moves could affect MANA price