Decentraland: Analyzing ‘development activity’ to find out entry position

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  • Decen­tra­land is work­ing towards stim­u­lat­ing devel­op­ment activity.
  • MANA bulls and bears locked in a tug of war: A look at the two sides of the coin.

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?


Is your port­fo­lio green? Check out the Decen­tra­land Prof­it Calculator


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.

Decentraland development activity

Source: San­ti­ment

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 price action

Source: San­ti­ment

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.

Decentraland network growth and realized cap

Source: San­ti­ment


Real­is­tic or not, here’s MANA’s mar­ket cap in BTC’s terms


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.



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