The native cryptocurrency of Decentraland (MANA) has seen an impressive 70% price surge over the past week, aligning with a broader rally in Metaverse-related tokens. This price movement has sparked curiosity among investors, with on-chain analysis revealing key drivers behind this surge and potential trends ahead.
Key Catalysts Behind MANA’s Price Rally
1. Spike in Active Addresses
A significant rise in active addresses on the Decentraland network has been a major factor in MANA’s recent surge. Active addresses represent the number of unique users transacting on the blockchain, a metric that reflects increased engagement and interest.
- On November 20, MANA’s active addresses stood at 810, but this figure surged nearly fivefold in just a few days.
- This activity coincided with the token’s price climbing from $0.40 to $0.70, its highest level since March 2024.
2. Soaring Trading Volume
According to Santiment data, MANA’s trading volume reached $1.57 billion, reflecting heightened buying and selling activity.
- High trading volume often signals strong market participation, validating the bullish sentiment reflected in the spike in active addresses.
3. Metaverse Revival
MANA’s rise mirrors a broader Metaverse token resurgence, with other projects like The Sandbox (SAND) also experiencing significant gains. This trend suggests renewed investor confidence in Metaverse ecosystems.
On-Chain Analysis: Resistance and Support Levels
1. Potential Resistance Around $0.70
Analysis of the In/Out of Money Around Price (IOMAP) metric reveals that approximately 36.47 million MANA tokens are held at an average price of $0.70, marking a key resistance zone.
2. Support Levels Near $0.61
The IOMAP metric also indicates support between $0.61 and $0.68, where holders are more likely to buy additional tokens or refrain from selling.
MANA Price Prediction: Pullback or Further Gains?
- Short-Term Correction: If resistance near $0.70 holds and buying pressure wanes, MANA’s price could retrench to $0.61 in the near term.
- Upside Potential: If buying volume surpasses the resistance level, MANA could climb further, targeting $0.80 as the next milestone.
Conclusion
Decentraland’s recent surge underscores growing interest in the Metaverse sector, with increased user activity and trading volume serving as strong indicators of market confidence. However, investors should monitor resistance and support levels closely, as a short-term correction remains a possibility before further gains can materialize.
