Decentraland price readies for 10% double portion as MANA holds above crucial support

Decentraland (MANA) price uptrend was countered by selling pressure from a supply barrier, causing a correction on Wednesday. However, with broader market bloom still abounding, the metaverse token’s price is on a recovery mission, bolstered by multiple bullish metrics.

Also Read: Decentraland whales load on MANA awaiting rally in MANA price banking on the “conference hype”

Decentraland price eyes 10% gain to $0.5000

Decentraland (MANA) price climbed almost 90% after the cryptocurrency market turned bullish on October 19. The rally saw MANA record an intra-day high of $0.5064 on November 11, but selling pressure from the supply zone extending from $0.4792 to $0.5044 caused a 20% pullback. The altcoin then found support due to the 25-day Exponential Moving Average (EMA) at $0.3993.

However, steered by several bullish drivers, Decentraland price is on a recovery mission, up 10% in the last 24 hours, with an additional 10% likely in the cards for MANA. With the price holding above $0.4163, the Relative Strength Index (RSI) heading north, and the Awesome Oscillator (AO) still in positive territory, the price is likely to head north.

Increased buying pressure could, therefore, see Decentraland price extend to retest the supply zone. A break and close above its midline at $0.4917 confirms the continuation of the trend. This could see MANA test the forecasted $0.5000, denoting a 10% move north above current levels.

MANA/USDT 1-day chart

Decentraland price on-chain metrics to support bullish outlook

Several on-chain metrics support the bullish outlook for Decentraland price, starting with the increasing social dominance, which points to the token being mentioned more across crypto-related social media. The mentions are not just mere words as there are increased active stablecoin deposits and Tether (USDT) market capitalization to back it up. This points to fresh capital flowing into the market as traders look to buy MANA.

MANA Santiment: Active stablecoin deposits, USDT market cap, social dominance

Meanwhile, whales are also accumulating, with data showing that the number of transactions moving over $100,000 and $1,000,000 worth of MANA  is increasing.

MANA Santiment: Whale transaction count

The supply on exchanges is falling along with increasing exchange outflows also backs up the bullish narrative. This is because moving tokens out of the exchange is a demonstration that traders are not looking to sell. This adds credence to the bullish thesis as it spared Decentraland price from the resulting selling pressure.  

MANA Santiment: supply on exchanges, exchange outflows

On the flipside, increased selling pressure could send Decentraland price south, breaking below the midline at $0.4163 before tagging the 24-day EMA at $0.3992. A confirmed slide below this level would invalidate the bullish thesis, with the slump likely to extend for MANA to test the 50 or 100-day EMAs at $0.3664 and $0.3555, respectively.

 If things fall apart, Decentraland price could extend a leg south to tag the $0.2685 swing low. This would denote a 40% fall below current levels.