Back to basics for Decentralands MANA as the momentum indicator turns bearish

• Decentraland has seen rapid growth in 2021, but has been relatively quiet this year

• Native Token MANA Falls After Maintaining Firmness

• Bearish weakness spreads after hawkish Fed report

Decentraland’s MANA/USD is down again. A bearish signal suggests that the price may plunge further. However, it is important to monitor critical levels to assess whether it is worth investing in.

A broader look at the sector reveals that most cryptocurrencies are in bearish territory. That was after the US Federal Reserve sounded hawkish on Wednesday about curbing high inflation. The US central bank threatened to raise interest rates further, shaking markets. Therefore, the drop in MANA reflects market sentiment.

Nevertheless, despite the 2021 metaverse boom, this year has been relatively quiet. Crypto winter seems to have swept all crypto market segments. Despite this, numerous projects continue to enter the metaverse space. This development has yet to spur Decentraland’s MANA rise. The Metaverse platform recently announced limited development. Opportunities in the nascent sector continue to exist. Due to lukewarm conditions, tokens like MANA rely on sector-inspired fundamentals.

Bearish MACD Crossover Pushes MANA Back To $0.77 Support?

Source TradingView

Technically, MANA lost track of the 21-day moving average. Momentum indicators also fell below the moving averages. Indicators suggest that MANA is set to correct further. The token still has a 50-day MA to support it.

For the bear market to subside, MANA needs to overcome a slide below the 50-day moving average. If not, the token is likely to return to the $0.77 support. A bear market will be welcomed if the weakness continues and the token breaks below $0.77. At current prices, MANA is just adjusting.

Overview

MANA has fallen alongside major cryptocurrencies after the Fed’s hawkish stance. The token has not yet fallen below the 50-day MA and support. MANA is not yet a bear market.