Decentraland remains a leading metaverse project by market capitalization, worth $1.6 billion during this publication, regardless of the recent bear market.
Furthermore, MANA cheered an impressive bullish performance last year, following the metaverse hype. Unfortunately, the subsequent market downturn has erased all acquired gains.
MANA has had its price actions constricted inside a triangle formation underscored by ascending support and descending resistance.
This pattern emerged after the alt bottomed during mid-May, following higher prices. Meanwhile, the descending resistance has pushed MANA inside a restricted range again, one that might see a breakout surfacing.
The wedge or triangle setup introduces further uncertainty as far as price direction is concerned. Nevertheless, Decentraland’s on-chain indexes might help offer some clarity.
MANA’s analysis within the past 30 days indicated accumulation by leading addresses. The supply by top address index bottomed near 46.17% on June 16. Nevertheless, this metric recorded substantial growth (after that), hitting 46.83% on July 9.
Mid-June sessions saw notable whale activity around MANA. That indicated massive accumulation when the alt approached the ascending support zone. Also, whale transactions increased as June ended, following another retest of support.
Calming before the Storm
The price wavered between the resistance and support zones during this publication, whereas the whale transaction count declined. That signals uncertainty as MANA price dipped into a restricted squeeze region.
Meanwhile, the alt has seen supply distribution by varying whale cohorts. Nevertheless, developments from July 8 to 10 indicated some bullish strength in the coming sessions.
Addresses with over ten million MANA tokens added their balances to July 10’s 58.91% from 58.84% on July 8. This whale category controls the highest Decentraland tokens in circulation.
Therefore, they boast a higher effect on price movements than other whales. Also, the past two days had addressed with 100K to 1 million MANA increasing their holdings to 5.67% from 5.61%.
Meanwhile, wallets holding 1 million to ten million tokens declined briefly. Their balance declined to 27.72% from 27.86% during that timeframe. It’s the 2nd-largest whale category. Hence, a significant say within the market.
Final Thought
The signs mentioned above confirm a likely bullish breakout from the triangle setup. That comes after the largest whale cohort fueled a bullish momentum. Nevertheless, a change in whale sentiments within the next 48hrs could attract more downside.
Editorial credit: Dennis Diatel / shutterstock.com
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