Decentraland (MANA) may make a comeback, thanks to low correlation with Bitcoin
This year saw a monumental rise in digital asset investment products with record inflows of around $9 billion YTD. Interest was also pretty evident in the upcoming Metaverse space, wherein Crunchbase’s list of companies has already raised over $96 million this year.
In fact, despite the larger market weakening, there were still some coins that stood out, one of them was the Metaverse token- Decentraland (MANA).
MANA was one of the only two tokens in the top 30 coins by market cap that noted double-digit gains, alongside Elrond. So, with Bitcoin oscillating under the $57K mark, can the same pave the way for MANA’s rise?
Price action about to get interesting
The last month changed the game for MANA, as the asset saw over 400% gains in the time frame, post the Metaverse mania. Even though the coin’s trajectory looked more or less independent, the alt’s rally did face hurdles after making an ATH of $4.94 in October end. MANA corrected by over 40% in the first week of November but managed to pull the price above the $4 level, a few days ago.
Now, as the attainment of the $5 level seems to be quite possible, can MANA be the next alt to reach its ATH?
At the time of writing, MANA was trading at $4.12 noting 12.15% daily, and 41.71% weekly gains. Strikingly, MANA’s correlation to Bitcoin was near all-time low levels at the time of writing and noted -0.26.
The negative price correlation to BTC indeed panned out pretty well for the altcoin as it rallied with Bitcoin’s price falling. While MANA seemed to defy the larger market trend for the last week, it did see minor losses.
Furthermore, a week ago, Barbados said that it will build the first digital embassy with the help of Decentraland, and news about the same managed to stir a positive sentiment for the coin, helping it rally against the tide. The flow of events in the Metaverse space, alongside such collaborations, further acted in support of the coin’s trajectory.
What about the metrics?
The last few weeks have been really impressive for Decentraland’s Active User Growth. In fact, the platform is expected to hit ~300K MAUs by the end of November, which is indicative of relatively higher adoption and participation on the network.
However, amid the recent larger market sell-offs, MANA too wasn’t completely shielded and the same could be observed through its active deposits which had strikingly high values. Spikes in the metric generally indicate short-term sell pressure, so with MANA’s price rallying, the same could tempt participants to take profits causing short-term price correction.
The count however wasn’t near ATH levels which was a relief for the price too. Further, at the time of writing, with the alt’s MVRV far from overheated, it seemed like there was still scope for gains.
Notably, on a 4-hour chart, MANA had been making higher highs and higher lows. If the alt continued the bullish momentum, a new ATH could be made soon enough. However, with the larger market being volatile its best to do your own research before making a move.