Decentraland (MANA) price analysis: is now a good time to buy this cryptocurrency?

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Jul 13, 2021
  • Sotheby's opened a virtual gallery in Decentraland
  • The popularity of this project continues to rise
  • $0.50 represents the critical support level

Decentraland MANA/USD remains under pressure; the price of this cryptocurrency fell from $1.61 to $0.37 since 7th May 2021, and the current price stands around $0.65.

Fundamental analysis: Sotheby’s opened a virtual gallery in Decentraland

Decentraland is an Ethereum-based blockchain platform that allows you to buy, build and monetize virtual reality applications. Using the simple Builder tool, you can also create scenes, games, artworks, challenges and create a profitable business within the Decentraland world.

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The virtual reality world should grow significantly over the next few years, and this platform offers you the ability to buy virtual land, which gives you ownership and control over the environment and applications on the platform’s world. Decentraland is fully decentralized and controlled via the DAO, which owns the most important smart contracts and assets on this platform.

Via the DAO, you decide and vote on how the Decentraland world works while MANA token powers this virtual reality platform and can be used to pay for virtual plots of land in Decentraland as well as in-world goods and services.

This project was originally created in 2015 by Argentinians Ari Meilich and Esteban Ordano, and the popularity of this project continues to rise. Last month, Decentraland announced that the world’s oldest auction house Sotheby’s, opened a virtual gallery in Decentraland.

“We see spaces like Decentraland as the next frontier for digital art where artists, collectors, and viewers alike can engage with one another from anywhere in the world and showcase art that is fundamentally scarce and unique, but accessible to anyone for viewing. We are having fun exploring new facets of the digital art world through our collaboration with the Decentraland community,” said Michael Bouhanna, Specialist and Head of Sales at Sotheby’s.

Fundamentally looking, there is still a level of uncertainty surrounding this project, and its success mainly depends on the flexibility of its strategy in response to the competitors’ moves. Technically looking, Decentraland (MANA) weakened from the record highs above $1.60, registered on 7th May, and the risk of another decline is still not over

The whole cryptocurrency market is pressured by the fall of Bitcoin, and if you decide to trade this cryptocurrency in July 2021, you should use a “stop-loss” order because the risk remains high.

Technical analysis: $0.50 represents the critical support level

Data source: tradingview.com

The strong support level stands at $0.50; $0.90 and $1 represent the important resistance levels. If the price falls below $0.50, it would be a firm “sell” signal, and we have the open way to $0.40 or even below.

On the other side, if the price jumps above $0.90 resistance, the next price target could be around $1.

Summary

Last month, the world’s oldest auction house Sotheby’s, opened a virtual gallery in Decentraland, and the popularity of this project continues to rise. Technically looking, Decentraland (MANA) remains under pressure, and if the price falls below $0.50, the next target could be around $0.40.

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