Decentraland (MANA), once severely affected by the downturn in the metaverse sector, is showing signs of recovery after a long period of weakness. Previously, its price had plummeted to as low as $0.20, marking a significant capitulation. However, recent data suggests promising indicators that this prolonged period of frailty might be coming to an end.
Promising Signs for MANA
According to the research group Alphractal, speculative inflows have begun to appear again on-chain. This occurrence is often considered a precursor to price momentum. Among the notable metrics is the Net Unrealized Profit/Loss (NUPL) indicator, which reached a low earlier this year. Such low points are typically evaluated by analysts as cycle bottoms.
Currently, MANA’s unrealized price level is measured at approximately $0.67, which is more than double the market price of about $0.32, serving as a significant resistance point. Breaking through this level could trigger a stronger upward trend. Other on-chain metrics are also providing positive signals. The Realized Capital Impulse, which tracks short and long-term capital transformations, is rising, and the Delta Growth Rate has turned positive, indicating new liquidity entering the network.
Alphractal highlights that the current situation mirrors the slow recovery period observed in MANA from 2018 to 2020. While a definite breakthrough has not yet been achieved, the current conditions suggest that the recovery process is about to commence.
Latest Developments in MANA
According to CoinMarketCap data, MANA has exhibited an approximate 12% rise over the past week, outperforming the market average. This movement indicates a gradual revival of interest in metaverse projects. Notably, actions by Meta, Apple, and Google in the realms of augmented reality and digital universes have rekindled interest in projects like MANA.
However, investors should closely monitor whether fundamental resistance levels are surpassed before anticipating potential upward movements.
