$MANA token has gained 10% on the heels of the recent Metaverse Fashion Week event. On-chain data suggests that Decentraland is poised to build on the recent price surge. Will the bears fight back?
On March 28, Decentraland ($MANA) price increased as the much-anticipated Metaverse Fashion Week kicked off. The event featured multiple brands looking to engage new audiences and set up shop in the metaverse. In addition to the $MANA price surge, critical on-chain data suggests that the event was well-received by Decentraland investors.
Decentraland Long-Term Investors Show Renewed Confidence
After a brief spell of profit-taking in February, Decentraland long-term investors appear to have regained confidence in $MANA’s future price prospects. According to on-chain data analytics firm Santiment, $MANA investors hold their tokens longer.
The chart below shows how $MANA Mean Coin Age has increased for two consecutive months since the last cliff-off on Feb 21. And since the recent downswing to 29.99 recorded on March 14, it has surged 34% to 39.39 as of April 7.
The Mean Coin Age tracks the average number of days current investors have held on to their tokens. The rising values of Mean Coin Age (90d) suggest long-term investors are growing confident of a future $MANA price upswing.
Furthermore, the decline in Network Value to Transaction Volume (NVT) ratio is another key indicator of a potential bull rally. The chart below shows $MANA NVT ratio declined considerably from 693.64 to 132.66 between March 26 and April 7.
The NVT ratio weighs the current transaction volumes against the underlying market capitalization of a crypto asset. A considerable decline, as observed above, suggests that $MANA is undervalued at current prices and may be due for an upswing.
In summary, with NVT ratio at such low levels, $MANA holders can expect more upside if long-term holders remain optimistic.
$MANA Price Prediction: Good to Go $0.70
IntoTheBlock’s Global In/Out of Money data shows that $MANA has a clear path to $0.70. As depicted below, $MANA will likely break out of its current resistance at $0.62, the maximum price 10,000 addresses had paid for 177,000 tokens.
If that happens, $MANA could tear above $0.70. But 30,000 addresses that bought 473,000 tokens around that price could take profit and inadvertently impede the rally.
Still, the bears could force a downtrend if $MANA loses the $0.57 support. But here, the 10,000 addresses that hold 177,000 tokens will look to prevent the drop. However, if it happens, the Decentraland native token could drop as far as $0.47. At that point, the support from 23,000 addresses that hold 324,000 tokens can trigger a rebound.
cryptonewsz.com
u.today
