Key Takeaways:
- Social media giant Facebook changed company name to “Meta”, aiming to “bring virtual reality to reality.”
- Metaverse platform Decentraland’s bulls caught the drift and pumped its native token MANA over 560%.
- The digital asset might be cooking a new rally, thanks to a bullish setup.
YEREVAN (CoinChapter.com) – Mark Zuckerberg last week rebranded Facebook to “Meta” and shifted a majority of his focus from social media to the emerging “metaverse,” a virtual reality space where users’ digital avatars can interact with each other and various digital objects.
The buzz around the news benefitted Decentraland (MANA), a self-proclaimed metaverse platform where users can buy and sell virtual properties.
Its native token rocketed 560% to hit an all-time high of $4.99 in just four days ending Oct 31. The rally subsided over the next two days, leading the digital asset lower to $3.14 Tuesday. However, technical indicators show that MANA could be gearing up for another 80% bull run.
The digital asset has been forming a Bullish Pennant, an upside continuation setup consisting of two converging trendlines that envelop the price action. It typically follows up with a price rally to the upside, with the price target at a distance equal to the previous uptrend’s height (flagpole).
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As a result, MANA eyes an 80% rally, pinning the resulting value at $5.70.
Why Decentraland?
Analytical platform Santiment stated that Decentraland was the top-trending topic on social media on Nov 1. Citing Facebook’s rebranding, Santiment added that MANA’s success secret “no longer appears to be a secret.”
Vijay Ayyar, the head of cryptocurrency exchange Luno’s Asia-Pacific branch, saw Facebook’s shift to Meta and Decentraland’s surge as a sign of metaverse’s growing adoption.
I read it as an interpretation of a vote of confidence amongst both speculators and investors that this concept of a metaverse is now taking a serious turn in terms of reaching mainstream consciousness and — soon — adoption.
commented the executive.
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Developers Ari Meilich and Esteban Ordano built Decentraland on the Ethereum platform in 2017. Its metaverse features themed districts that users can purchase in exchange for MANA tokens. The platform also offers its users to socialize within the metaverse, build on the purchased land, and play games.
