Decentraland: A story of increased adoption but major concerns
- MANA’s price rallied by over 8% in the last seven days.
- Exchange outflow spiked and a few other metrics supported the surge.
Decentraland [MANA] has witnessed an increase in adoption over the last few weeks, with several new partnerships in the metaverse and NFT domain.
The recent launches and events showcase the trust of brands and companies in Decentraland. For instance, the Domino’s Originals: DjMaRiiO documentary premiered on Decentraland. Moreover, Doritos also recently announced its new musical metaverse mixer on Decentraland Metaverse.
A musical metaverse mixer like no other (say that three times fast). Chance to win custom gaming PCs, @RTFKT & @MeebitsNFTs, limited Edition Doritos wearables and more in our new @Decentraland
world, #DoritosTriangleStudios.Mark those calendars for February 8th 👀 pic.twitter.com/F7hBXmdgHH
— Doritos (@Doritos) February 3, 2023
Read Decentraland’s [MANA] Price Prediction 2023-24
Thanks to these developments, MANA ranked second on the list of Polygon projects with the most mentions in the last seven days.
This update shows the popularity of the token in the crypto space. Interestingly, while Decentraland hosted multiple events, MANA’s price rallied over the last week.
According to CoinMarketCap, MANA registered over 8% weekly gains, and at the time of writing, it was trading at $0.7781 with a market capitalization of more than $1.44 billion.
Most-mentioned Polygon Projects on Twitter In The Last 7 Days$SFUND @seedifyfund$MANA @decentraland$GALA @GoGalaGames$GNS @GainsNetwork_io$RNDR @RenderToken$ELON @dogelonmars$OCEAN @oceanprotocol$NAKA @NakamotoGames$TEL @telcoin$TRB @WeAreTellor#POLYGON #MATIC $MATIC pic.twitter.com/MhH8ow98uN
— NFTevening ɢᴍ (@NFTevening) February 3, 2023
These factors fueled the pump
CryptoQuant’s data revealed that MANA’s exchange reserve was decreasing, which is a positive signal as it indicates lower selling pressure.
Another bull signal was that Decentranald’s exchange outflow spiked in the last few days. MANA’s development activity also increased, suggesting more efforts from the developers to improve the network.
Furthermore, MANA’s network growth remained up during the last week, which could have played a role in its price surge. But, at the time of writing, this metric had sharply declined. While MANA’s price increased, its MVRV Ratio registered a decline, which looked unusual.
Is your portfolio green? Check the Decentraland Profit Calculator
Caution is advised
Though the weekly price action aligned with investors’ interests, things might change as suggested by a few market indicators.
The MACD revealed that the bulls and the bears were struggling to gain an advantage over each other. MANA’s Relative Strength Index (RSI) registered a decline, which might result in a price decline in the coming days.
The Chaikin Money Flow (CMF) also followed the RSI by declining and was heading further below the neutral mark. Nonetheless, the Exponential Moving Average (EMA) Ribbon still remained bullish as the 20-day EMA was resting comfortably above the 55-day EMA.
