Back to basics for Decentraland’s MANA as momentum indicator turns bearish
Decentraland boomed in 2021, but this year has been relatively quiet
The native token MANA is sliding after remaining robust
The bear weakness is widespread after a hawkish Fed report
Decentraland’s MANA/USD is slipping again. Bear signals suggest that the price may crash further. However, it is crucial to monitor key levels to evaluate whether investing is worthwhile.
A broader look into the sector shows that most cryptocurrencies are in bear territory. That was after the US Federal Reserve, on Wednesday, sounded hawkish about taming high inflation. The US Central Bank hinted at more rate hikes, a move that spooked markets. Thus the drop in MANA reflects the market sentiment.
Nonetheless, despite the metaverse booming in 2021, this year has been relatively quiet. It seems that the crypto winter swept across all crypto market segments. Nonetheless, numerous projects continue to enter the metaverse space. The developments are yet to spur a rally in Decentraland’s MANA. The metaverse platform has announced limited developments lately. Opportunities in the nascent sector remain in place. The lukewarm state has made tokens like MANA rely on sector-inspired fundamentals.
Bearish MACD crossover pushing MANA back to $0.77 support?
Source – TradingView
Technically, MANA has lost grip of the 21-day moving averages. The momentum indicator has also crossed below the moving average. The indicators suggest that MANA is set to correct further. The token still has the 50-day MA supporting it.
For the bear weakness to subside, MANA must overcome sliding below the 50-day MA. Otherwise, the token could be back to the $0.77 support. If the weakness continues and the token slips below $0.77, that will welcome a bearish market. At the current price, MANA is just undergoing a correction.
Summary
MANA is falling alongside major cryptos after a hawkish Fed stance. The token is yet to fall below the 50-day MA and support. MANA is not yet in a bearish market.
The post Back to basics for Decentraland’s MANA as momentum indicator turns bearish appeared first on CoinJournal.
