Decentraland (MANA) Eyes 18% Temporary Surge – Price Analysis
- MANA price shows downtrends, but the alt might see a relief 18% rally.
- Transaction data displays underwater investor clusters that might prevent surges beyond $3.
- Violating the barrier at $2.20 might catalyze a 32% drop towards $1.49, invalidating the bullish narrative.
Decentraland (MANA) has experienced massive bearishness since hitting its ATH in 2021. However, the metaverse coin seems to pause the downtrends as it hovers within a demand region. A swift upward move appears despite the near-term bearish picture.
Decentraland remains stuck beneath a plunging trend-line for almost two months. Moreover, the altcoin has plunged by 50% since its initial retest. Though MANA tried a breakout on 15 January, failure had it sliding under the level.
Meanwhile, MANA price wavers within the demand region, stretching from $2.20 to $2.88. Such actions translate to the probability of a slight uptrend. Market players may expect the metaverse coin to gain 18%. With that, Decentraland would retest 100-day SMA at $3. Nevertheless, the weekly resistance near $2.92 might halt the uptrend.
Any move past $3 appears unlikely because of the 50-day Simple Moving Average at $3.27. Also, bearishness in the overall crypto space would challenge the upside by MANA in the near term.
The GIOM model by IntoTheBlock supports the limited upside by MANA’s technicals. The index suggests that nearly 31,120 addresses that bought 488.12 million Decentraland coins at $3.20 average price are out of money. That means upward actions to this zone might encounter massive selling momentum from investors attempting to break even.
Exchanges supply appear to exemplify the investors’ sentiment for MANA price. The on-chain metric indicates MANA tokens on a centralized platform surged by 43 million from 18 December 2021 to 19 January.
The surge in holders shows a possible sell-side momentum, accentuating the limited upside move highlighted above. Also, the crypto market’s bearishness might see MANA preferring a downward path.
A 24hr candle close beneath $2.20 will form a lower low, despite the near-term bullishness. Such a case will cancel the optimistic case for MANA price. That way, the metaverse coin might suffer a 32% crash towards $1.49.
Stay tuned for upcoming developments in the cryptocurrency world.