Decentraland (MANA) Price Correction and Dumping by P2E Investors
Decentraland (MANA) has experienced another 5% price correction, causing its price to retest $0.35. This comes as Yield Guild Game’s (YGG) price surged 350%, leading P2E investors to dump MANA. On-chain data suggests that new P2E gamers are choosing more profitable platforms over Decentraland.
Key Points:
- Decentraland has seen a significant downturn in user acquisition rate, with a 73% drop in new wallet addresses between July 24 and August 6.
- The lack of substantial network growth indicates that Decentraland may struggle to attract new users.
- Bulls are preparing to defend the $0.35 support level by placing active buy orders for 6.73 million MANA tokens.
- The market depth shows an excess demand of more than 2.3 million MANA tokens, which may mitigate the impact of investors dumping Decentraland.
- The $0.34 support level is critical for MANA bulls, as there are 1,630 addresses that bought 47 million MANA at that price.
Given the on-chain indicators, the $0.34 support level could determine the future price action for MANA. If the bulls can trigger a rebound above the $0.40 range, MANA may head towards $0.40.
Hot Take:
Decentraland is facing challenges in attracting new users, as P2E investors choose more profitable platforms. However, the support from bullish investors and excess market demand may help stabilize MANA’s price in the near term. The critical support level of $0.34 and the resistance at $0.40 will determine the future price trajectory for MANA.
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