Decentraland has continued to attract significant investment this week as the bulls extend the monthly price gains to 13%. Can the rising whale demand push MANA price above the landmark $0.50 territory?
Crypto Whales Spotted Buying 24 Million MANA Tokens This Week
The newly-acquired 23.9 million MANA tokens are worth approximately $10 million when valued at the current market price of $0.42. This increased whale demand appears to have put upward pressure on MANA price, driving it above the critical resistance zone at $0.40.
When whales keep buying more tokens as prices approach critical peaks, it implies that they are positioning for more gains rather than booking early profits. More so, it infuses much-needed liquidity into the market, enabling traders to execute trades efficiently at favorable prices.
Also, considering their influence, the whales’ recent bullish moves could encourage strategic retail investors to double down on their Long positions as well. These factors could further propel MANA’s price closer to the milestone $0.50 mark in the days ahead.
As MANA’s price dropped to a two-year low of $0.26 in mid-September, many dysphoric investors closed their positions and exited the market. However, courtesy of the increased whale demand and improvement in the overall sentiment surrounding the metaverse, liquidity within the Decentraland markets has increased significantly.
According to Santiment, MANA Daily Trading Volume reached an H2 2023 peak of $193.4 million this week.
The Daily Trading Volume metric measures the nominal value of all trades and transfers involving a particular cryptocurrency on a given day. An increase in trading volume is a vital bullish signal. It indicates improved market liquidity and growing investor interest in the underlying asset.
However, the timing and price trend that followed this noticeable uptick in MANA trading volume suggests that much of the capital inflows in the last few days could be from bullish investors pushing for more gains.
From an on-chain perspective, Decentraland’s recent price breakout above $40 was driven mainly by the rising whale demand and improved market liquidity. And with these metrics still trending upward, MANA is in a prime position to extend its gains toward $0.50
The Global In/Out of the Money (GIOM) data, which groups the current MANA holders according to their entry prices, also confirms this bullish prediction.
It, however, shows that MANA must first scale the initial resistance at $0.46 for the bulls to be confident of reclaiming $0.50.
As depicted below, a large cluster of 23,990 holders had bought 347.45 million MANA at the minimum price of $0.46. If those holders close their positions early, they could slow down the Decentraland price rally.
But if the bulls can push aside that resistance level, MANA price will likely reclaim $0.50 as predicted.
Yet, the bears could negate the optimistic prediction if the MANA price reverses below $0.30. But, in that case, the 20,320 holders that bought 205.05 million MANA at the minimum price of $0.35 could mount a support wall. If those investors can HODL firmly, the Decentraland native token will likely avoid a significant price retracement.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.