Decentraland downtrend not over yet, overhead selling remains
- Decentraland price remains under selling pressure, proponents expect liquidation of long positions to fuel further drop.
- The metaverse token’s recent partnerships have increased its social dominance and popularity.
- The sale of virtual real estate in the Decentraland ecosystem continues as brands pour capital into the metaverse.
- Analysts note lower lows on the Decentraland price chart predict a rounding-off effect and a trend reversal at some point.
Decentraland price is in a downtrend hitting lower highs over the past week. Analysts expect overhead selling to increase pressure on the metaverse token, driving the price lower.
Derivatives price could suffer further drop as longs are offloaded
The metaverse token Decentraland’s price has posted lower highs for a week now. This is considered indicative of a downtrend. Proponents believe that Decentraland price has run into resistance at increasingly lower levels, therefore, there is a possibility that long positions may get offloaded. Decentraland tokens flooding exchanges could increase the selling pressure and fuel a bearish narrative.
Decentraland has posted over 25% losses over the last two weeks. Despite capital inflow from brands and institutions buying virtual real estate in Decentraland’s metaverse, there is a spike in selling pressure on the token across exchanges.
Tyler Hill, a cryptocurrency analyst and YouTuber, evaluated the Decentraland price trend and observed the metaverse token hitting lower highs consecutively over the past week. Hill noted three missed opportunities for trend reversals along the downtrend.
Hill said that observing the distance between the lower lows getting shorter indicates a rounding-off effect. Once the downward pressure slows down, Decentraland price could recover and bulls may have more success pushing the token higher.
Analysts expect Decentraland to outperform the play-to-earn metaverse gaming token Axie Infinity once it recovers from the downtrend.
FXStreet analysts are bullish on Decentraland price and predict a rebound to $4.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
