The cryptocurrency market remains under pressure. Should I sell Decentraland (MANA)?

By: Invezz

All major cryptocurrencies have weakened this Tuesday after several days of winning streak. Decentraland MANA/USD has weakened from $1.04 to $0.72 in less than several hours, and the current price stands around $0.85.

Fundamental analysis: The popularity of this project is rising

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.

This platform offers you the ability to buy virtual land, and it is important to mention that the world’s oldest auction house Sotheby’s, opened a virtual gallery in Decentraland recently. Decentraland is fully decentralized, and to interact with this platform; you should use MANA tokens that allow you to pay for virtual plots.

All major cryptocurrencies have weakened this Tuesday, Bitcoin went below $43000 for a moment, and traders should consider that the risk of further decline is not over. If the price of Bitcoin falls again below the $45000 support level, it would be a firm “sell” signal, and this would add further pressure to the whole cryptocurrency market.

“When investing in cryptocurrency, it’s important to remember that volatility is the name of the game. Volatility is magnified, on the upside and downside, by the fact that the price is driven heavily by trader sentiment, and traders can quickly swing from rabid optimism to gloom and doom,” said analyst James Royal from Bankrate.com.

Fundamentally looking, Decentraland (MANA) has a big potential; the popularity of this project is rising across the globe, but there is still a level of uncertainty. Technically looking, MANA extended its correction from the recent highs above $1.10, registered on 30th August, and if you decide to trade this cryptocurrency in September 2021, you should use a “stop-loss” order because the risk remains high.

Technical analysis: The risk of further declines is probably not over

Decentraland (MANA) is currently trading very close to the current support level at $0.80, and there are some obvious risks when it comes to buying MANA in the upcoming days.

Data source: tradingview.com

If the price falls below $0.70 support, it would be a firm “sell” signal, and the next target could be around $0.50. The risk of further declines is probably not over, but if the price jumps above $0.90, we have the open way to $1.

Summary

Decentraland (MANA) has weakened from the recent highs above $1.10, registered on 30th August, below $0.80, and the current price stands around $0.85. Decentraland (MANA) could weaken even more in the upcoming days, the critical support level stands at $0.70, and if the price breaks it, the next price target could be around $0.60 or even $0.50.

The post The cryptocurrency market remains under pressure. Should I sell Decentraland (MANA)? appeared first on Invezz.

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