Decentraland (MANA), once a favorite of retail traders during the 2021 bull frenzy when it peaked above $5, has spent most of the bear cycle languishing near the bottom of the charts.
The token even dipped to $0.20 at its lowest point, reflecting the deep capitulation that swept through the metaverse sector.
Now, signs are emerging that MANA’s long period of weakness could be coming to an end. Research group Alphractal pointed out in a new analysis that speculative inflows are beginning to show up on-chain, often a precursor to renewed price momentum.
One of the indicators catching attention is the Net Unrealized Profit/Loss (NUPL), which hit rock bottom earlier this year. Analysts see this as a potential marker of a cycle bottom. At the same time, MANA’s unrealized price sits near $0.67, more than double its current market value of roughly $0.32. That level is also flagged as a critical resistance point—if broken, it could trigger a stronger rally.
Additional on-chain metrics are also leaning bullish. The Realized Capital Impulse, which tracks short- and long-term capital rotation, is trending upward, suggesting speculative capital is returning. Likewise, the Delta Growth Rate has flipped positive, indicating that fresh liquidity is entering the network.
Alphractal argued that these combined factors mirror the slow recovery phase seen between 2018 and 2020, when MANA spent years consolidating before breaking higher. While no breakout has yet occurred, the firm believes the current backdrop is increasingly supportive of a rebound.
If momentum continues building, MANA could be preparing to leave behind its lengthy bear market stagnation and open the door to a new upward phase.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/decentraland-mana-shows-signs-of-recovery-after-long-bear-market/