MANA formed many positive signals, the price is likely to increase 20%

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2022-03-15 10:34:51

The price of Decentraland (MANA) is currently breaking above the key support, suggesting a move higher. The overall market picture also seems to show the formation of a bottom reversal pattern, giving credence to the upside probability from the ongoing accumulation process.

MANA is waiting for a catalyst

MANA has crossed the $2.20 support, tripling since Nov. 10, a triple tap pattern, similar to a triple bottom, but the center part often deviates to the bottom. This setup also forecasts a trend change in favor of the bulls.

After 3 retests of the $2.20 resistance area, MANA has started to accumulate, and is hovering below the $2.83 barrier. The longer the accumulation lasts, the stronger the price will explode.

Therefore, investors can expect MANA to rally at least 20% to the $2.83 area. In the event of a breakout of this zone, the market could return to test the $3.49 resistance area, pushing the total rally to 46%.

MANA Price Chart | Source: TradingView

The 30-day Market-to-True Value (MVRV) Index is also flashing an upbeat signal. This index is used to gauge the average profit/loss of investors who have purchased MANA tokens in the past month.

A negative value below -10% shows that short-term holders are losing money and is usually where long-term holders tend to accumulate. Therefore, values ​​below -10% are often referred to as “opportunity zones”.

Currently, the 30-day MVRV for MANA is hovering at -7.8% after recovering from -14% over the past week. This could be a sign that long-term holders are accumulating tokens.

MANA

MANA MVRV Indicator | Source: Santiment

Comprehensive picture

Net real profit/loss (NPL) is an on-chain metric that can be used to gauge potential selling pressure. This index calculates the average profit/loss of coins that change addresses on a daily basis.

The first time an asset changes hands, the NPL assumes that the address has acquired the token and considers it sold the next time it is moved to another address. Therefore, the spike in this indicator shows the possibility that investors are taking profits and keeping an eye on the amount of tokens being sold.

On March 10, NPL spiked to 16.26 million, indicating that many investors took profits. Although at the moment, the index has dropped slightly, helping the possibility of a sell-off. The combination of accumulation and MVRV with NPL paints a full picture, showing a bullish outlook for MANA.

MANA

Realized net profit/loss of MANA | Source: Santiment

Finally, the number of active addresses in 1 hour spiked, adding weight to the inherent bullish outlook. This on-chain indicator made a higher high, showing growing investor interest.

The spike in active addresses shows that retail traders are bullish on MANA at current prices.

MANA

Number of active addresses in 1 hour | Source: Santiment

Overall, the price of MANA looks poised for a move higher, with the potential towards the marginal zone. However, a close below $2.2 will invalidate the bullish thesis and open a bearish bias for the altcoin.

According to AMBCrypto



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