Decentraland: Deciphering reasons behind MANA’s bullish performance
- MANA registered double-digit daily gains.
- Whale interest increased and metrics looked bullish.
AO Metaverse and Decentraland [MANA] recently organized the second edition of Australian Open 23. The event, in which attendees were able to enter the main stadium, Rod Laver Arena, explore the precincts, and choose their own adventure through a series of tennis content, concluded on 29 January.
Set those reminders ⏰
You won't want to miss the @AOmetaverse Closing Party! 🎉 https://t.co/WiMfWGqHS1 https://t.co/uZogc0VB5D
— Decentraland (@decentraland) January 29, 2023
Soon after the event ended, Decentraland’s price skyrocketed. CoinMarketCap’s data revealed that MANA’s price surged by more than 10% in the last 24 hours. At the time of writing, it was trading at $0.7852 with a market capitalization of over $1.45 billion.
This unprecedented surge can be the reason behind whales’ interest in MANA as the token made it to the list of cryptos that the top 1000 Ethereum whales were holding.
🐳 The top 1000 #ETH whales are hodling
Whale leaderboard 👇https://t.co/jFn1zIOq03 pic.twitter.com/ufmRI1a9c0
— WhaleStats (tracking crypto whales) (@WhaleStats) January 29, 2023
How much are 1,10,100 MANAs worth today?
What caused this pump?
A closer look at MANA’s on-chain metrics shed some light on what might have fueled the token bull rally. CryptoQuant’s data revealed that MANA’s exchange reserve was low, indicating lower selling pressure.
Furthermore, over the last week, MANA’s exchange outflow increased while the exchange inflow decreased, which looked pretty bullish and might have played a significant role in the pump.
Active addresses on Decentraland also registered an increase, reflecting a higher number of users on the network. Interestingly, the price surge was accompanied by a massive increase in volume, which further legitimized the uptrend.
Realistic or not, here’s MANA’s market cap in BTC’s terms
However, this should be considered
While the metrics were bullish and supported the possibility of a continued surge, MANA’s market indicators had a different story to tell.
The Bollinger Bands pointed out that MANA’s price was entering a less volatile zone, which might restrict MANA from going up in the short term.
In addition to that, MANA’s Chaikin Money Flow (CMF) and On Balance Volume (OBV) both registered a slight downtick, raising concerns.
Nonetheless, the Exponential Moving Average (EMA) Ribbon revealed a massive bullish advantage in the market as the 20-day EMA was well above the 55-day EMA, which can lead to a price hike over the next few days.