Decentraland (MANA) had some amazing runs recently. Is there still some gas left in the tank for a bull run in the upcoming months? Read more to find out!
Decentraland (MANA) is a project built on the Ethereum blockchain that defines itself as the metaverse owned by the users. These users can live a real life in virtual reality using their platform.
In this world, users can own LANDS and use the builder tool to create a number of things. More experienced builders can even create games and social applications.
In Decentraland, you can also trade digital assets. There is a marketplace where you can buy and sell LAND, avatars, wearables, etc. All of these assets are available in the form of NFTs. It’s really easy to start exploring Decentraland. Just connect your wallet and you're good to go!
MANA, the native token of Decentraland, saw a massive rise in value recently. In this article, we will have a look at MANA considering different time frames to have a better understanding of its future outlook.
MANA/USDT on a Weekly Chart
Keep in mind that this is the logarithmic chart where the price action in the past is better quite visible. The Fibonacci levels plotted are also logarithmic.
In late 2017, during the previous bull run, MANA went up x35 within a few weeks. When it topped in January 2018, like many other altcoins, a multi-year bear market followed.
After about two years, in March 2020, a massive capitulation occurred, which was the bottom for MANA. After that bottom, the token started a new uptrend, with higher highs and higher lows on the weekly chart.
A few weeks ago, MANA saw a massive increase in price again, which resulted in a new all time high. On the right-hand side of the chart, you can see Fibonacci levels plotted from the high in March 2021 to the low in June 2021.
Would MANA be able to do a 10 times price spike from the current point, towards the 2.618 level? Or will it only reach the 1.618 level?
It all depends on the overall performance of the crypto market.
MANA/USDT on a Daily Chart
On this chart, you can see the price action of MANA in 2021.
The first top occurred in April. Shortly after, the price dropped and MANA fell into a range and couldn’t break it for about 160 days. That was a period of accumulation where MANA printed the same pattern as many other coins:
The bottom in May,
Another shake-out/stop hunt in June
A retest of the bottom in July.
After the retest in July, MANA started trending again, but not with that force. Another sell-off happened that triggered many traders to lose their interest in the token. MANA exploded to the upside, leaving former investors behind.
After the explosion, many investors took their profits out causing the price to go down again. MANA perfectly touched the Golden Pocket Fibonacci level that could be seen as a perfect entry point in a strong uptrend. If MANA isn’t done yet, it will probably range first, preferably around the mid-range.
As you saw on the weekly chart, there is still upside potential. However, based on the daily chart, this may take some time, especially after such a pump that the market has seen recently.
However, if MANA is also bullish in the short term, it needs to find support on the .382 Fibonacci level. If it manages to hold here, it could rise in price again.
Summary
Decentraland (MANA) is the metaverse, owned by its users. It has been around since 2017.
The weekly chart shows that MANA is in a strong uptrend. A few weeks ago, the price made a new all time high. The cryptocurrency market is still very bullish, so it would only be logical if MANA stays in the uptrend for a while.
The daily chart shows a massive pump that happened about two weeks ago. Some ranging before continuation of the trend will be observed.
The 4H chart shows that a reclaim of the .382 Fibonacci level is needed for continuation in the short term.
Disclaimer: The above analysis is solely the writer's understanding. Never take anything for granted and always do your own research.
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