Key Takeaways:
- NFT multiverse Decentraland flashed bullish signals on the chart, targetting the price at $4.58.
- The growing demand for metaverse tokens powered MANA through the correction on the market, and added 19% to its value in a week.
YEREVAN (CoinChapter.com) – MANA, the native token of Decentraland, a crypto-powered digital world, gained 19% in the previous week, despite the heavy correction on the crypto market brought on by Bitcoin (BTC).
The metaverse token rose 8% in the past 24 hours to $3.26, with its market cap rising 56% month-do-date to $5.88 billion.
MANA/USD flashed a bullish setup
MANA hinted at an upside in the coming session with a Falling Wedge on the four-hour chart. The said formation enveloped the price action for the previous five days and could lead to another 40% gain.
The bullish Falling Wedge typically expects gains equal to the flagpole (the uptrend preceding the wedge). Thus, according to the chart, MANA’s target price could stand at $4.58.
However, Decentraland’s bulls took their time after breaking out of the pattern, as the token hovered over the 20-four-hour exponential moving average (EMA-20; blue wave), rather than adopting a bullish bias. The upcoming sessions will show if MANA will comply with the technical setup’s prediction.
Also read: Overlord (LORD) crypto token tanked despite play-to-earn sector FOMO.
While the metaverse and play-to-earn game sector boomed, Bitcoin’s correction wave swept through the rest of the market, including most of the top 50 cryptocurrencies.
Decentraland’s gains come amid the ubiquitous buying pressure in the metaverse crypto market. DESPITE THE CORRECTION, several NFT multiverses such as Sandbox (SAND) coins have also gained in the past week. SAND put on 32% in the said period, while the alpha cryptocurrency lost 10%.
The correction wave knocked most of the altcoins as well: Ethereum (ETH) declined by 12%, while Solana (SOL), Cardano (ADA), and Ripple (XRP) lost 12.2, 18.5, and 12.6%, respectively.
What’s behind Decentraland’s MANA advance?
The reason behind the uptrend might be the growing demand for metaverse tokens. In early November, David Zastrow, who represented blockchain-powered game Axie Infinity at the NFT.nyc conference, foresees global growth in the industry.
He estimated the current number of players in decentralized gaming at 2.5 million and predicted an expansion into South America and Africa in the upcoming years.
Moreover, Decentraland(MANA) scored a new collaboration on Nov 14 to set a precedent for the broader NFT multiverse market. The metaverse company partnered with the government of crypto-friendly Barbados to establish the first official embassy in the digital world.
While the move did not positively affect MANA value straight away, it could be a step in the direction of progress, thinks H.E. Gabriel Abed, the ambassador of Barbados to the United Arab Emirates.
This is a way for Barbados to expand its diplomatic missions beyond the 18 it currently has with 190+ countries around the world. This allows us to open the door, using technology diplomacy, which then extends to cultural diplomacy – the trade of art, music, and culture
said the Ambassador.
Also read: Metaverse token market jumps 13% as AXS, MANA, SAND rally
Decentraland is at the forefront of the growing metaverse sector. Thanks to the 395% gain quarter-to-date and the first digital embassy underway, its market cap grew to $5.88 billion. While the rest of the market corrected in the previous week, MANA flashed bullish charts. The Falling Wedge setup targeted the price at $4.58.
