Bitcoin hovering below $ 57,000 could pave the way for Decentraland (MANA)?
This year, digital asset investment products have grown dramatically, with a record investment inflow of approximately $ 9 billion in 2017. The Metaverse section is also of great interest as Crunchbase lists companies that have raised more than $ 96 million this year. In fact, despite the weakness of most of the market, there are some coins that stand out, like Decentraland’s MANA token.
MANA is one of only two tokens in the top 30 coins by market capitalization that, together with Elrond (EGLD), are posting double-digit growth. So, could Bitcoin swinging below $ 57,000 pave the way for MANA to grow?
The price campaign will be interesting soon
The final month was a pivotal time for MANA as the asset rose over 400% during that period after the Metaverse craze. Although the coin appears to be independent, the bulls are taking a setback after setting an ATH at $ 4.94 in late October, with MANA correcting over 40% in the first week of November but has since tried to get the price ahead Draw over $ 4 a few days.
Source: trade view
Will MANA be the next altcoin to hit ATH when the price may hit $ 5 in the near future?
At the time of writing, MANA is trading at $ 4.25, up 8% on the daily chart and 31% weekly. It is noteworthy that the correlation of MANA with Bitcoin at the time of going to press is almost at an all-time low (-0.26).
The current negative BTC correlation is proving to be a boon given the crypto king’s recent underperformance. While MANA appeared to defy the larger market trend last week, the price has fallen a bit.
Additionally, Barbados said a week ago that it would build its first digital embassy with the help of Decentraland, and the news sparked a positive sentiment on the altcoin and helped it recover. The flow of events in the Metaverse space along with such partnerships continues to aid price developments.
What about indicators?
In the last few weeks the number of active users on Decentraland has increased dramatically. In fact, the platform is expected to reach ~ 300,000 monthly active users by the end of November, indicating a relatively higher level of adoption and engagement on the network.
The source: Fede Molina
In the midst of the recent major market sell-off, however, MANA also suffered somewhat, as demonstrated by its very high value deposits. The rise of this indicator usually indicates short-term selling pressures. Therefore, as MANA rises, participants are likely to take profits, resulting in a short-term price correction.
However, the number of deposits is still not close to the ATH level, which also limits the price drop. Additionally, at the time of writing, MVRV isn’t too hot so there appears to be room for growth.
Notably, MANA has hit higher highs / lows on the 4 hour chart. If the price continues to rise, a new ATH could soon be created. However, since the broader market is volatile, it is best to do your own research beforehand.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to AMBCrypto