MANA – the native token on the leading virtual reality platform powered by the Ethereum blockchain Decentraland – witnessed a sharp correction as it entered a new year, thereby wiping off all the monthly gains.
It fell below a crucial support zone and was currently trading at $0.46. Despite this, MANA maintained growth of approximately 46% over the past year, and the latest downturn might lay the groundwork for a potential upward movement soon.
Even though GameFi tokens gained significant attention in 2020-2021, their values saw a steep decline alongside the broader crypto industry, which started experiencing a downturn in late 2021.
There is still anticipation for a potential revival, as recent data suggests that MANA is currently in a ‘depression’ phase.
Notably, on-chain analyst Ali Martinez highlighted that this phase marks a crucial point in the typical market psychology cycle and indicates that it could be gearing up for a potential upswing.
Martinez, once again, referred to the Wall Street cheat sheet that analyzes the psychology of market cycles and depicts the diverse emotions in play.
The cheat sheet essentially outlines the mental states of market participants at different stages of the cycle. During this particular “depression” phase, when public confidence in the market hits its lowest ebb, subtle signs of improvement start to emerge.
Despite the emotional strain, investors must acknowledge that sellers have exited the market. This creates an opportunity for the accumulation of assets at exceptionally low prices, signaling the initiation of momentum for the next cycle.
In addition to MANA, the native token of another metaverse platform, The Sandbox, SAND, was also hovering in the “depression” phase.
Source : CryptoPotato / Jan 4, 2024