MANA Witnessed a Sharp Correction
The native token of the virtual reality platform Decentraland, MANA, experienced a significant drop in value at the beginning of the year, erasing all its monthly gains. It is currently trading at $0.46. Despite this decline, MANA has shown growth of around 46% over the past year, and this recent downturn could set the stage for a potential upward movement in the future.
GameFi Tokens Experience Steep Decline
In line with the broader crypto industry, GameFi tokens have also seen a steep decline after gaining significant attention in 2020-2021. This downturn began towards the end of 2021.
Potential Revival for MANA
There is anticipation for a potential revival as recent data suggests that MANA is currently in a ‘depression’ phase. This phase is crucial in the market psychology cycle and may present a unique opportunity to acquire MANA before a potential market upswing.
Analyzing Market Psychology Cycle
On-chain analyst Ali Martinez highlights that this ‘depression’ phase is an important point in the market psychology cycle. Martinez refers to the Wall Street cheat sheet, which analyzes the psychology of market cycles and depicts different emotions at play.
Opportunity for Asset Accumulation
During this ‘depression’ phase, when public confidence in the market is low, subtle signs of improvement start to emerge. It’s important for investors to recognize that sellers have exited the market, creating an opportunity to accumulate assets at low prices and signaling momentum for the next cycle.
Other Tokens in ‘Depression’ Phase
In addition to MANA, another metaverse platform’s native token, The Sandbox (SAND), is also experiencing the ‘depression’ phase.
Hot Take: Potential Upward Movement for MANA
Despite its recent correction, MANA’s position in the ‘depression’ phase of the market psychology cycle indicates the possibility of an upcoming market upswing. This presents an opportunity for investors to consider acquiring MANA before a potential revival.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.