The how and why of MANA’s projected 20% run-up on the charts
Decentraland’s price is currently coiling up above a crucial support level, suggesting the possibility of a move higher. The big picture also seemed to show the formation of a bottom reversal pattern. This lent credibility to the probability of a bullish breakout from the alt’s ongoing consolidation.
MANA has tagged the $2.20-support level thrice since 10 November, giving rise to a triple tap setup. This technical formation is similar to the triple bottom setup, but the central tag usually deviates below the base. The setup also forecasts a trend change favoring the bulls.
After the third retest of the $2.20-barrier, MANA’s price kickstarted a consolidation, with the same stuck under the $2.83-hurdle at press time. The longer this coiling up continues, the more explosive a breakout will be.
Therefore, investors can expect at least a 20% run-up to $2.83. In a highly bullish case, the crypto could revisit the $3.49-resistance barrier, pushing the total gains to 46%.
Source: MANA/USDT on TradingView
Supporting this optimistic outlook for Decentraland’s price is the 30-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors who purchased MANA tokens over the past month.
A negative value below -10% indicates that short-term holders are at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.”
Currently, the 30-day MVRV for MANA is hovering at around -7.8% after recovering from -14% over the past week. This may be a sign that an accumulation from long-term holders is ongoing.
Source: Santiment
The net realized profit/loss (NPL) is another on-chain metric that can be used to gauge the
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