Decentraland is working on stimulating development activities. MANA bulls and bears engaged in tug-of-war: a look at the two sides of the coin.
If you bought Decentraland’s MANA in December or earlier this month, good for you. It has had an impressive performance so far until recently when it encountered resistance at a major level.
But the question is: should investors expect higher profits or lower profits?
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Decentraland is still one of the best metaverse projects in the blockchain space. However, the hype for metaverse projects is significantly lower than in 2021 and 2022.
Anyone paying attention to MANA is probably wondering what the long-term potential of this is. However, it all boils down to the project’s future plans and the latest announcement may provide some insight.
Being a creator is a mindset. 🧠
A maker can be anyone who gets involved, contributes, participates, crafts, builds or implements.
2023 is the year of the makers. https://t.co/tAPEWl2zqs
— Decentraland (@decentraland) January 27, 2023
According to the update, Decentraland is looking at more utility and network growth. The network is working to onboard more creators as part of its growth strategy. But what does this mean for MANA holders?
Developmental activity is one way of looking at it. Decentraland’s plan to attract more developers to its platform can support healthier development activity in 2023.
Most crypto projects have seen robust development activity since early January, but Decentraland’s was largely erratic and down in January. However, it has risen sharply in the past five days.
Source: Sentiment
Healthier development activities have traditionally been a feature of projects with a long-term focus. If history repeats itself and Decentraland manages to do this, we can expect more confidence from investors.
A favorable result means we may see more demand for MANA in the coming months. Still, the near-term outlook is still murky, especially as demand has slowed.
In particular, the metaverse alt has been moving sideways since mid-January, but has held its position just above the 200-day MA.
Source: Sentiment
MANA’s current position underscores its relative strength. Nevertheless, there is still a possibility of a volatility resurgence.
What should investors expect?
If demand recovers, MANA could usher in another bullish rise in February, possibly heading to the next resistance level of $0.80.
Alternatively, a bearish outcome could push as low as USD 0.60. Decentraland’s network growth has slowed since mid-month and is currently at a new monthly low.
Source: Sentiment
Realistic or not, here is the market cap of MANA in terms of BTC
On the other hand, it should be noted that the realized limit is at a new monthly high. This could be a signal that there is enough exit liquidity to support profit-taking if investors are FUD-counterfeited.
The “glass is half full” view is that investors are currently holding their coins rather than selling them. This means there is optimism about a more bullish recovery in the coming weeks.
This post Decentraland: analysis of ‘development activity’ to find out the starting position
was published first on https://ambcrypto.com/decentraland-analyzing-development-activity-to-find-out-entry-position/
