decentralized country [MANA] Sitting on Overbought Tops – Is It a Recipe for Disaster?

  • Decentraland has seen its ecosystem metrics grow over the past week.
  • The price of MANA has jumped more than 70% in the past seven days.

decentralized country [MANA]The decentralized virtual world based on Ethereum, has seen a jump in growth metrics over the past week, per data from DappRadar.

According to the Data Tracking Platform for Decentralized Applications (dApps), the virtual world has recorded an increase in its weekly user count, transaction count, and sales volume in the past seven days.

With 1,770 unique active wallets (UAWs) on Decentraland in the past week, the total number of UAWs has increased by 4%. During the period under review, the number of transactions that took place between UAWs in Decenraland was 17,900. This represents an 8.44% increase in the number of transactions on the metaverse-based platform.

Realistic or not, here is the market cap of MANA in terms of BTC

Moreover, increased interaction between active portfolios culminated in a rise in sales volume at Decentraland, data from DappRadar showed. With $15,990 worth of sales completed in Decentraland in the past 7 days, sales volume increased by 19.47%.

Source: DappRadar

MANA is not excluded

Data from CoinMarketCap shows that the native token that powers Decentraland has seen its price grow over the past week. The metaverse token is trading at $0.7007 at the time of writing, ranking as the crypto asset with the second highest gains in the past week. The price has increased by 76% over that period.

The price chart evaluation showed that the altcoin was overbought at the time of publication. For example, the Relative Strength Index (RSI) was 91.57. Similarly, the MANA Money Flow Index (MFI) settled at 96.91.

The dynamic line of MANA’s Chaikin Money Flow (CMF) also indicates significant buying pressure in the market, which is in the positive territory away from the central line at 0.34.

It is necessary to note that when there is an overbought of a cryptocurrency asset, it means that the demand for it is greater than the current market conditions, and its price has risen to a level that is considered very high.

At this level, profit-taking is common, and buyers usually find it difficult to sustain additional price gains. Therefore, a decrease in the price of MANA may occur in the coming days.

How much is 1,10,100 MANA worth today?

Moreover, the Alt Bollinger Bands (BB) assessment indicated sharp price volatility in the current MANA market as there was a wide range between the upper and lower bands of the BB.

High volatility in the price of an asset can lead to large fluctuations in a short period of time, as prices move up and down. This can be both beneficial and detrimental to investors, as it provides opportunities for quick profits, but it also increases the risk of big losses if the price moves against their position.

Source: MANA / USDT on TradingView

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