Metaverse tokens like Decentralands MANA are the golden ticket to the future
Metaverse is the latest hype trend in the crypto space. Since Facebook is one of the newest reputation platforms to jump into the fray, many see Metaverse as the successor to the social media era.
In Metaverse, the user typically interacts with the environment created by the system. Real estate is obviously the most hotly debated topic.
Just a day ago it was reported that a digital land on the play-to-earn gaming platform Axie Infinity was sold for around $ 2.3 million. The land is used to provide special content such as Chimera Bosses and Raids.
Latest offer
Decentraland was quick to follow in Axie’s footsteps. The platform also recently closed a deal to sell a range of virtual properties to the Metaverse Group for $ 2.43 million. In fact, the above figure is more than double the previous record of $ 913,000.
According to an official statement, the company wants to use the virtual land to promote “fashion shows” and “handicrafts” in the booming “digital fashion industry”.
While there is room for fashion in the Metaverse, it should not be forgotten that it is a relatively new, unfamiliar area. So time will tell whether the industry can perform as expected.
The negative reaction from MANA
Until recently, Decentraland’s native cryptocurrency MANA received a lot of attention. However, the token’s price surge has stopped so far due to the broader market slump.
On November 25th, MANA hit a new high around the $ 6 mark. Then it started falling, however, and it currently stands at $ 4.41 at the time of writing.
MANA / USDT | Source: TradingView
At this point, a number of analysts, including Amsterdam-based Michaël van de Poppe, are warning investors of a possible stagnation phase. In Video In his most recent analysis, he found:
“… If you are interested in any of these projects, I really think it is time to take profits, especially when it comes to MANA (and SAND). You have gained a lot. You need to take profits before price takes a catastrophic correction as the downward momentum is stronger than the upward momentum at this point. ”
It seems that Poppe is indeed right, as the state of most of the indicators seems to favor his bearish view.
Network activity began to deteriorate. For example, the number of active addresses fell by more than a third in the three days between November 24th and 27th.
Number of active addresses in 1 hour | The source: mood
In addition, the sales trend is also beginning to form. Just a few hours ago, the deposit trading chart rose. This indicator shows all incoming and outgoing transactions related to the token deposit on a daily basis.
Number of deposit transactions | The source: mood
Spike movements on the chart usually indicate that HODLers are starting to give up their tokens. Hence, the current condition does not promote the bullish story.
In addition, Santiment’s chart also highlights inactive coins that are starting to move, suggesting that the phase of MANA accumulation is fading.
So before the MANA price drops any further, market participants could consider taking profits.
Long term vision
Development activities | The source: mood
On the flip side, those who seriously believe that Metaverse is the future and have held it for a while can stay in the market. Why?
First, because the network’s development activities are growing well and there are some certainties about the future prospects. Second, Metaverse and gaming technology are currently still in their infancy. At this point there is tremendous growth prospect day in and day out.
In fact, the value of metaverse tokens, including MANA, is likely to skyrocket in the years to come.
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Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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Metaverse tokens like Decentralands MANA are the golden ticket to the future
Metaverse is the latest hype trend in the crypto space. Since Facebook is one of the newest reputation platforms to jump into the fray, many see Metaverse as the successor to the social media era.
In Metaverse, the user typically interacts with the environment created by the system. Real estate is obviously the most hotly debated topic.
Just a day ago it was reported that a digital land on the play-to-earn gaming platform Axie Infinity was sold for around $ 2.3 million. The land is used to provide special content such as Chimera Bosses and Raids.
Latest offer
Decentraland was quick to follow in Axie’s footsteps. The platform also recently closed a deal to sell a range of virtual properties to the Metaverse Group for $ 2.43 million. In fact, the above figure is more than double the previous record of $ 913,000.
According to an official statement, the company wants to use the virtual land to promote “fashion shows” and “handicrafts” in the booming “digital fashion industry”.
While there is room for fashion in the Metaverse, it should not be forgotten that it is a relatively new, unfamiliar area. So time will tell whether the industry can perform as expected.
The negative reaction from MANA
Until recently, Decentraland’s native cryptocurrency MANA received a lot of attention. However, the token’s price surge has stopped so far due to the broader market slump.
On November 25th, MANA hit a new high around the $ 6 mark. Then it started falling, however, and it currently stands at $ 4.41 at the time of writing.
MANA / USDT | Source: TradingView
At this point, a number of analysts, including Amsterdam-based Michaël van de Poppe, are warning investors of a possible stagnation phase. In Video In his most recent analysis, he found:
“… If you are interested in any of these projects, I really think it is time to take profits, especially when it comes to MANA (and SAND). You have gained a lot. You need to take profits before price takes a catastrophic correction as the downward momentum is stronger than the upward momentum at this point. ”
It seems that Poppe is indeed right, as the state of most of the indicators seems to favor his bearish view.
Network activity began to deteriorate. For example, the number of active addresses fell by more than a third in the three days between November 24th and 27th.
Number of active addresses in 1 hour | The source: mood
In addition, the sales trend is also beginning to form. Just a few hours ago, the deposit trading chart rose. This indicator shows all incoming and outgoing transactions related to the token deposit on a daily basis.
Number of deposit transactions | The source: mood
Spike movements on the chart usually indicate that HODLers are starting to give up their tokens. Hence, the current condition does not promote the bullish story.
In addition, Santiment’s chart also highlights inactive coins that are starting to move, suggesting that the phase of MANA accumulation is fading.
So before the MANA price drops any further, market participants could consider taking profits.
Long term vision
Development activities | The source: mood
On the flip side, those who seriously believe that Metaverse is the future and have held it for a while can stay in the market. Why?
First, because the network’s development activities are growing well and there are some certainties about the future prospects. Second, Metaverse and gaming technology are currently still in their infancy. At this point there is tremendous growth prospect day in and day out.
In fact, the value of metaverse tokens, including MANA, is likely to skyrocket in the years to come.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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