Cryptocurrency

Decentraland Price Analysis: Is Now a Good Time to Buy MANA Metaverse Coin?

Does Decentraland's (MANA) Metaverse Still Have the Lustre It Once Had?

KEY TAKEAWAYS

  • MANA currently trading in a bearish descending triangle pattern
  • Decentraland (MANA) seeing major recovery in active address count
  • Decentraland (MANA) valuations skewed towards overvalued side

WHAT IS DECENTRALAND (MANA)?

Decentraland, one of the largest decentralised metaverse option in the crypto world, has a lot going for it. Powered by the Ethereum blockchain, it is a virtual reality platform that lets its users to create, sell and enjoy content and various different apps. It also has the feature of letting users explore, develop and monetise plots of digital land in their own metaverse.

According to a recent report by JP Morgan, called “Opportunities in the Metaverse”, says $54 billion are spent per year on virtual goods. They have even launched a digital lounge on Decentraland. Pop culture celebrities like Pairs Hilton among many others have invested in this particular metaverse option too.

But despite all that, the current market scenario has hit this metaverse token very hard.

Additional Read: How Decentraland MANA works?

DECENTRALAND MANA Price and Technical Analysis

MANA/USD | Source: Tradingview

Back towards the end of October, 2021 – MANA had displayed the biggest rally any major crypto had even given in the recent past. On 28 October, when Facebook announced that it was rebranding its parent company to Meta – Decentraland’s MANA token saw a near 500% rally in a matter of two days (marked in red circle). It quickly fell and rebounded to touch a new ATH just a month later before beginning its journey downward.

As of now, MANA is forming a descending triangle patterns on the charts – which is widely considered to be a strongly bearish price pattern (marked in orange lines). MANA has been able to hold on to its value ever since the beginning of May, right after the LUNA crash and that gives its investors some hope.

But if the price breaches the lower trendline resistance of $0.7, it may result in a catastrophic free fall in price of this token. But if it manages to hold on and recover beyond the 50-day moving average and is supported by the Relative Strength Index to reach the 200-day moving average and maybe even breach it, it can show promise.

Additional Read: MANA vs SAND 

Check out latest MANA Price, Charts & Data.

IS A GOOD TIME TO BUY DECENTRALAND MANA?

One of the most positive aspects a coin can show at a fundamental level is a rise in the number of addresses on the chain, which are actively transacting. This depicts a healthy participation from real world users who are actively interested as well as invested in the particular token.

And it is an even stronger signal is a particular coin happens to show an increase in the number of active addresses while there is a bear market underway. Such a coin is MANA.

Active Addresses | Source: Glassnode

Ever since the beginning of the year, MANA has been steadily depreciating in price but towards the middle of May, active addresses on the chain spiked and since then has managed to bottom out and is even trying to rise, albeit very gradually. Current active addresses count is relatively higher than it was early in October 2021 – a very optimistic sign.

So it is safe to assume that despite seeing their coin depreciate in value, actual investors and stakeholders in this coin have managed to hold on and back the coin.

Additional Read: MANA vs Axie Infinity

Check out latest MANA INR Price, Charts & Data.

HOW MUCH IS DECENTRALAND (MANA) BEING VALUED?

Well, for that let’s take a look at the NVT Ratio or the Network Value to Transactions Ratio. Network Value to Transactions (NVT) Ratio describes the relationship between market cap and transfer volume on the blockchain. And from an on-chain perspective – this metric is implying a worrying indication for MANA.

NVT Ratio | Source: coinmetrics.io

As depicted on the chart, we can clearly observe that the NVT Ratio for MANA is even above October-November 2021 levels. What this means is that the current market cap (the numerator of the ratio) is being valued at a much higher value than the actual use of the blockchain in terms of transaction volumes (the denominator). This can go ahead in two different ways.

Going forward, if the transaction volumes increase over time with the prices remaining stable or moving up slowly – the NVT Ratio would gradually come down to more acceptable levels thus making it a move viable investment opportunity. On the other side, if the transaction volumes don’t eventually increase over time, the NVT Ratio would stay high making it unviable and a very risky investment option.

Additional Read: MANA vs Enjin Coin

CONCLUSION

In conclusion, Decentraland’s MANA token is definitely a coin you should keep an eye out for. This is because essentially, Decentraland is a solid project with sound fundamentals and it has a bright future. What is missing right now is broader market positive momentum and sentiment. Once that begins to recover, a price appreciation in this particular token is extremely probable followed by resumption in transaction volumes on the blockchain.

SO DO YOU WANT TO BUY DECENTRALAND (MANA)?

It’s super simple! Just download the CoinDCX App crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy Decentraland (MANA). It is as easy as that. Over 1 crore Indians trust CoinDCX and its about time you join the family too!


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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