Can whales rescue MANA from its dwindling price action

Posted: September 27, 2023

• The daily count of MANA transactions above $100,000 climbed to a three-month high on 25 September. 
• While this signals renewed whale interest, its price has failed to respond.

MANA, the native coin of leading metaverse-based protocol Decentraland, logged a three-month high in its daily count of whale transactions that exceeded $100,000 during the intraday trading session on 25 September, data from Santiment showed. 

🐳 #Linear and #Decentraland have had fairly unassuming price performances in 2023. But they have highlighted an uptick in #altcoin whale transactions that are showing on @santimentfeed‘s dashboards to start the week. https://t.co/MMujrgfHB0 pic.twitter.com/mgEhezTrNw

— Santiment (@santimentfeed) September 25, 2023

According to the data provider, a total of 24 transactions involving MANA, each valued above $100,000, were completed. This represented a 96% surge from the one transaction of that nature recorded the previous day. 

Read Decentraland’s [MANA] Price Prediction 2023-2024

MANA fails to react?

A surge in an asset’s whale transactions suggests that large investors are increasing interest in it, which could be a sign of bullish sentiment for the token. It often precipitates a short-term rally for most crypto assets.

However, even after 24 hours MANA’s price has failed to react. The token exchanged hands at $0.29 at press time, growing by just 1%. With the market considerably “choppy” in the last month, the alt’s price has oscillated between $0.31 and $0.29 in the past 30 days.

The market for an asset is said to be choppy when its price moves up and down in a narrow range with no clear trend. 

Due to the sideways price movements, accumulation among daily traders has slowed. With many traders staying away from completing trades, the token’s key momentum indicators have fallen below their respective center lines.

A look at the charts

Trending downward at press time, MANA’s Chaikin Money Flow (CMF) was -0.06. A negative CMF value connotes weakness in the market, as it signals liquidity exit from the spot market. If sentiment grows poorer and MANA’s CMF slips further, its price might witness more decline.

Moreover, the token’s Relative Strength Index (RSI) was 49.30 as of this writing. Positioned below its 50 center line and trending downward, selling pressure outpaced accumulation among spot traders.

Source: MANA/USDT on TradingView

Apart from the general market’s sideways movement, assessing how profitable MANA transactions have been in the last month offered better insights into why the market has been relatively stagnant. 

Is your portfolio green? Check the MANA Profit Calculator

The token’s Market Value to Realized Value (MVRV) ratio – which measures the average profit or loss of all holders of a cryptocurrency – has been less than one in the past month. In fact, it has been below one in the last year. 

Source: Santiment

When an asset’s MVRV is less than 1, the asset is deemed to be undervalued, and many of its holders would sell below their cost basis, thereby realizing losses if they let go of their holdings at the asset’s current price.