Decentraland: Analyzing ‘development activity’ to find out en | Big Bang Coin
Decentraland: Analyzing ‘development activity’ to find out entry position
If you bought Decentraland’s MANA in December or earlier this month, then good for you. It has so far delivered an impressive performance until recently when it faced resistance at a key level.
But the question is- Should investors expect more gains or slashed profits?
Decentraland is still one of the top metaverse projects in the blockchain space. However, the hype for metaverse projects is notably lower than in 2021 and 2022.
Anyone watching out for MANA is probably wondering about its long-term potential due to this. However, it all comes down to the project’s plans for the future and its latest announcement may offer some insights.
According to the update, Decentraland is eying more utility and network growth. The network is working towards bringing more creators on board as part of its growth strategy, But what does this mean for MANA holders?
Development activity is one way to look at it. Decentraland’s plan to usher in more developers on its platform may support healthier development activity in 2023.
Most crypto projects achieved robust development activity since the start of January but Decentraland’s has been irregular and downward for the most part in January. However, it did surge in the last five days.
Healthier development activity has historically been a characteristic of projects that have a long-term focus. If history repeats and Decentraland pulls this off, then we can expect higher confidence levels among investors.
A favorable outcome means we might see more demand for MANA in the next few months. Even so, the short-term outlook is still foggy especially now that demand has slowed down.
Notably, the metaverse alt has been moving sideways since mid-January but it has maintained its position just above the 200-day MA.
MANA’s current position underscores relative strength. Nevertheless, there is still a possibility of a resurgence of volatility.
What should investors expect?
If demand recovers, MANA may usher on another bullish surge in February, possibly pushing towards the next resistance level at $0.80.
Alternatively, a bearish outcome may push as low as $0.60. Decentraland’s network growth has been slowing down since mid-month and is currently at a new monthly low.
On the other hand, it should be noted the realized cap is at a new monthly high. This could signal that there is enough exit liquidity to support profit-taking if investors get spoofed by FUD.
The “glass half full” point of view is that investors are currently holding on to their coins rather than selling. This means there is optimism about a more bullish recovery in the coming weeks.
