Decentraland joins GameFi rebound – MANA’s move to $0.20 depends on…

Decentraland [MANA] made strong gains on Saturday, the 17th of January. Over the past ten days, the local resistance zone at $0.15 had been contested, but bulls made a clean breakout past this level on Saturday. The GameFi sector made strong gains in recent days, with Axie Infinity [AXS] leading the charge. This momentum has stalled over the past 48 hours, but it could rekindle later this week. The [Bitcoin [BTC]] pullback in recent hours of trading has dragged [MANA] prices lower. The move triggered [$864 million] in liquidations across the market within the past 24 hours. If it were solely a liquidity hunt, the chances of a recovery would be better. This could set up MANA and select altcoins up for a good bounce. Assessing the strength of Decentraland bulls ------------------------------------------------ Coinalyze data showed that the Open Interest, which had increased by nearly 50% over the weekend, had suffered a 10% drop in the past few hours. Source: Santiment The Dormant Circulation saw a sizeable spike on Sunday, the 18th of January. It was accompanied by a rapid price drop. Generally, increased Dormant Circulation implies older coins were being moved onchain for selling. Additionally, the 30-day MVRV, which had reached 10.3% on the 13th of January, was at -4.7% at the time of writing. This suggested short-term holders were, on average, facing losses once again. The Mean Coin Age has also fallen over the past week. The lack of accumulation, flurry of dormant token movement, and short-term holders taking profits were indicative of a lack of long-term market conviction. The Spot Volume Bubble Map indicated that the market wasn’t overheated. Previously, the end of 2024 and the 2021 cycle top had marked overheated conditions, which led to a long-term downtrend. The Exchange Netflow metric showed sizeable MANA outflows in the past two days. It was a slightly encouraging sign, but investors would want to see sustained outflows in the coming weeks. Overall, Decentraland onchain metrics showed that the threat from profit-taking was considerable. A rally toward $0.20 and $0.25 were possible, but traders and investors should keep their expectations reasonable. Traders, especially, should be focused on taking profits when the altcoin challenges nearby resistance zones, such as $0.17 and $0.19. Final Thoughts - The spike in dormant circulation the previous day, combined with the falling mean coin age over the past week, indicated MANA distribution. - MANA was not overheated, showed the spot volume map, and there was space for further gains, but bullish market conviction was lacking. Next: FARTCOIN falls 10%, cracks below $0.36 – Was this a liquidity trap? Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.