Decentraland (MANA) has been struggling with declining price performance and fewer new users joining the metaverse project. There has been an overall 15% drop in the price of MANA from its recent local high of $0.67 on March 18. On-chain data reveals a steep 64% drop in the amount of new users joining the Decentraland universe since mid-January.

The reason for this could be due to competition from other projects, as well as a sell-off among Decentraland whales. Blockchain analytics platform Santiment found that a cluster of whales with balances of 1 million to 10 million MANA began to deplete their holdings, dumping a total of 53 million tokens worth approximately $30 million between February 21 and March 31. This large group of whales holds around 33% of the total Decentraland circulating supply and could trigger more MANA downsizing if they continue to liquidate their coins.

Analytics provider IntoTheBlock has identified that, with only 45.78% of MANA holders currently profitable, the Decentraland market is largely bearish and could be at risk of a further price decline. If MANA losses its current support at $0.55, where 8,500 addresses had paid for 132 million tokens, the token could enter a free fall towards the next support level of $0.46, held by 20,700 addresses with 293 million MANA tokens. The bulls would need to break above the resistance of $0.60 for a rally towards the following resistance level of $0.70, where 32,000 addresses hold 512 million tokens.



Other News from Today