Decentraland (MANA), one of the most popular altcoins during the 2021 bull market, was among the most popular altcoins among investors with an ATH exceeding $5. However, with the end of the bull market and the beginning of the bear market, MANA experienced a rapid decline from its ATH, falling to the $0.20 level.
But the dark days may be behind MANA. Cryptocurrency analysis firm Alphractal said MANA could soon see renewed interest as speculative money begins to flow back into the network.
According to Alphractal analysts, on-chain data suggests that MANA is going through a prolonged period of capitulation.
According to analysts, the Net Unrealized Profit/Loss (NUPL) metric reached its lowest level in April, likely signaling a strong bottom.
Alpharactal analysts noted that currently, MANA is trading at around $0.32, while its Unrealized Price is at $0.67.
This level of $0.67 also acts as the next major resistance point for MANA, according to analysts.
A breakout of this level could signal the start of strong bullish momentum and potentially pave the way for a larger rally.
According to analysts, the Realized Capital Impulse metric, which also tracks the dynamics of short- and long-term speculative capital, is also showing a positive trend, indicating that the MANA price could react significantly in the near future.
Finally, the Delta Growth Rate metric is also rising and in positive territory, indicating new money entering the network.
At this point, the analysis company stated that positive values in on-chain metrics are dominated by speculative inflows, while negative values generally indicate periods of accumulation and decline, and that these values point to an increase for MANA.
Stating that MANA’s current price movements resemble the long bear market between 2018 and 2020, the analysis firm predicts that some promising on-chain signals are now starting to appear and that a bullish trend for MANA may be imminent.
*This is not investment advice.