Metaverse-associated digital tokens have surged incredibly over the past few weeks. One of its top performers, Decentraland or MANA token has risen by a whopping 680% since October 28th. It reached a new all-time high of $5.90 on 24th November, after it facilitated a virtual real estate sale worth over 618,000 MANA-equivalent to $3.2 million.
However, over the past 48-hours, MANA’s market cap dropped down to $5.8 billion, after reaching a top of $9 billion. We will analyze MANA’s price structure and on-chain fundamentals in this article. With the trend collective bearish, it is important to estimate any possible consequences.
Is MANA daily chart still strong?
As mentioned earlier, MANA’s value rose by a whopping 680% in the past few weeks. At the time of writing, the asset is oscillating within an ascending channel. The trend is not bearish yet as MANA continues to find support on the lower incline trendline(yellow). However, if the price breaks under the pattern, MANA may undergo correction down to $3.93 or possibly, $3.32. The $3.32 is the 0.5 Fibonacci level, which is an adequate retracement level from a bullish rally.
Similarly, trading volumes are presently reducing, which is not entirely positive for MANA’s immediate growth. Liquidity is existing Bitcoin, Ethereum‘s market, and that may translate into MANA’s loss as well. However, there was a key difference.
Bitcoin and MANA’s shared correlation level
Decentraland token is currently exhibiting a 6-monthly low correlation with Bitcoin. This narrative can both be a blessing and a boon. It allows MANA to take charge of its own price rally, meaning it may surge again, considering sentiments are positive. However, it also indicates that one BTC’s charge comes in, it may not collectively follow the bullish trend, and could be left behind if momentum starts to hinder.
Another important investment metrics remained positive for Decentraland.
The Market-Value to Realized Value of the token is currently at a neutral zone. It has not reached yearly highs, where investors might be incentivized to take profits. Hence, long-term buyers have seated for the time being without being bothered about the bearish sentiment.