Key Takeaways:
- The MANA price is facing some turbulence as the price is hovering within a very narrow margin for over a week
- The trend appears to flow towards the lower support for a while, post to which a rebound may revive a fine upswing in the coming days
- Traders part away from Decentraland but the whales and the other top 100 addresses hope for a strong rally ahead
Decentraland was one of the most talked about projects as it gained acute fame in the last quarter of 2021. Amid the NFT boom, the prices spiked high to lead the NFT boom which gave a larger push to the entire crypto space including the Bitcoin price that hit ATH close to $69,000. However, the popularity faded away as soon as the bearish market began in 2022 and prevailed till the end of the year.
The MANA price then dropped from levels around $3.5 to as low as $0.2 to form the bottom of the bear market. However, the price quickly rebounded and soared by more than 190% to mark the interim high at around $0.8. As the markets remained under bearish influence in 2022, the traders were quite bewildered about NFT due to which most of the NFT tokens dropped heavily.
Read More: Decentraland(MANA) Price Prediction 2023
Decentraland (MANA) Technical Overview
Source: Tradingview
- The Decentraland (MANA) price is trading within a symmetrical triangle and very close to the apex of the consolidation
- The price has lowered to the support levels of the triangle, indicting the growing strength of the bears since the past few days
- Besides, ADX which determines the strength of the rally is plunging due to which the possibilities breaching the support is possible
- However, the bulls may certainly prevent extended bearish action due to which the price may further approach the apex to trigger a bullish breakout
Decentraland (MANA) On-Chain Overview
Decentraland MVRV ratio
Source: Coinmetrics.io
The MVRV ratio is the comparison between the current market value or the market capitalization to its realized value. The resultant is the fair value of the token which further determines whether the current price is overvalued or undervalued. If the price is below the fair value it indicates that the price is undervalued and hence flashes a chance of bullish reversal.
However, the MVRV ratio for MANA has spiked from the bottom levels that indicates that the price has gained enough value and is trading within an overvalued level. Meanwhile, the price may still have the chance to witness a minor pullback as the traders may extract some profits after a giant price action.
Decentraland Active Address Count
Source: Coinmetrics.io
The platform’s popularity and demand is determined by the user’s activity over the time. A huge activity usually indicates the rising trend for the token which may further impact the price largely. The active address count helps to determine the user activity as it records the address interacting with the platform regardless of whether it is a buy address, a sell address or a swap address.
The active addresses had spiked heavily in the first few days of 2023 post to which the levels dropped heavily. Presently, they are hovering within a very narrow range below 1000 indicating the dropped interest of the users.
Decentraland Supply in Top 100 Addresses (native units)
Source: Coinmetrics.io
The supply in the top 100 addresses indicates the behavior of the whales which is largely followed by the retail traders. A rise in these levels may circulate a bullish sentiment within the market participants who may build a significant buying pressure, impacting the value of the token.
The supply appears to have risen massively in the past few weeks as the levels have reached the interim highs. Although the price movement is restricted, the supply continued to rise high, indicating that the whales or the top 100 addresses are pretty confident of a strong upswing in the days coming ahead.
Read More: The Sandbox(SAND) Price Prediction
Concluding Thought
Decentraland (MANA) may have lost the grip over the market presently, but the chart patterns and the on-chain indicators flash significant bullish signals. MVRV ratio being bullish along with the top 100 addresses which are amplifying their reserve point towards a fine ascending trend to begin very soon.
