# [NFA]Decentraland analysis – MANA By [3HOUSE](https://paragraph.com/@3house) · 2023-04-12 --- **Author: 3HOUSE user @Diamo.ens** 1\. Fundamental --------------- MANA is a cryptocurrency that powers the Decentraland virtual world, where users can buy, sell and build virtual real estate using MANA tokens. Decentraland is built on the Ethereum blockchain, which means that MANA is an ERC-20 token. MANA has a supply of 2.2 billion tokens, with approximately 1.8 billion tokens currently in circulation. MANA has seen significant price fluctuations since its launch in 2017, with a high of $5.90 in November 2021 and a low of $0.005 in March 2020. In early 2021, the price of MANA began to rise rapidly. As of April 10th 2023, the price of MANA is $0.59 USD. During the next bull run we could see MANA hitting new all time highs, I will be going deep into analysis of MANA below. One of the key factors driving the price of MANA on the way to its all time high, is the growth of the Decentraland platform. The virtual world has seen significant development since its launch with more and more users building on the platform and engaging in various activities such as; gaming, socialising, and commerce. The growth of Decentraland has led to increased demand for MANA tokens as users need MANA to buy, sell, and build virtual real estate within the platform. The platform, being decentralized means no central authority controls it. Thus giving the user full transparency and ownership of their virtual assets. The virtual world of Decentraland is divided into parcels of land, each of which is represented by a non-fungible token (NFT). Users can buy and sell these NFTs using MANA, which creates a market for virtual real estate within the platform. Users can also use MANA to buy and sell various virtual items such as clothing, accessories, and weapons. In conclusion, MANA is a cryptocurrency that powers the Decentraland virtual world and has seen significant price fluctuations since its launch. It is built on a very reliable and well established ERC20 blockchain. The growth of Decentraland and overall growth of the cryptocurrency market has contributed to the rise of MANA’s price when hitting its all-time high. MANA has a very unique and innovative use case, during a bull run we can expect to see all-time highs again; if they continue to develop and build the community. It has a user friendly infrastructure and welcomes anyone to the community, from devs to everyday users! 2\. Technical analysis ---------------------- Before diving into our MANA analysis let us begin by looking at the overall market. If we look at BTC we can see it is currently breaking out to the upside, after consolidating for the past few weeks. BTC has hit the highest it has been since June 2022! However looking at RSI, we are right on the point of being overbought, I believe we will soon target areas of liquidity in order to carry on this move up. There are few scenarios that could play out here, one being we go down to the 24.5k range where an order block is or we can go down lower to fill the 22000 range. ![](https://storage.googleapis.com/papyrus_images/043b848664295eeb8b13857ca49df96b98065fffab8c126f03e93081b93136cb.png) By looking at this BTC heatmap we can see if price continues to carry on moving up, there will be little liquidity to target. As seen below in the sub 28k range there is a high amount of liquidity which has built up, thus adding confluence to my analysis on the basis that price shall move down too grab this liquidity in order to see further upside potential. ![](https://storage.googleapis.com/papyrus_images/32e4835374265dd365df6816c919fecc9f60c2c4cdcf662edb8084a76050ca50.png) We have taken out all the liquidity above. Before you can clearly see we had an equal amount above and under, confirming we were in a consolidation. BTC dominance is something we can look at to add even more confluence to our trades. BTCD can fall lower, when BTCD does fall lower and BTC rises at the same time, ALTs tend to increase rapidly. So if we look at the charts, we can see BTC has the opportunity to fall to lower level such as the 25k range where we can grab liquidity and reverse, on top of this BTCD should continue to fall. This could leave us in a good position to enter ALT coins trades. Now for MANA analysis: Looking at MANA on the daily, we can see this bullish opportunity present itself. We would look to accumulate and open longs at the price level of 0.5281, with our stop loss at 0.4178. Please take into consideration your risk management and do not expose your capital to more than you can handle. We would look to TP at: **TP1 trim 25% – 0.6479 TP2 trim 50% – 0.7439 TP3 trim 50%– 0.8446 TP4 – HOLD** ![](https://storage.googleapis.com/papyrus_images/ec9103928b34753118d9315ed79a8a3b1f412c388691add50cc476e013187bce.png) A bearish scenario we would look at for MANA is one that lines up with BTCs possibility to fall to grab liquidity. We would enter at the price level of 0.6353 with our stop loss at 0.6811. Please again manage your risk and do not overexpose your capital. This scenario aims to target our long entry and I believe the market will do this as we have had some inducement and this should follow up with entering this supply zone above. We will look to take profits at: **TP1 trim 25% – 0.6164 TP2 trim 50% – 0.5678 TP3 close remaining – 0.5281** ![](https://storage.googleapis.com/papyrus_images/dc52da9b9a20515cdc1f6474b1a8942b1467a226fdcc76d5c9dad0dd76a3be16.png) Summary: -------- These two scenarios allow for us to profit from price moving up and price moving down. I think we should see our long entry hit and this will be a good point where we will see a price reverse and start to pump. As we see market conditions start to get better and better over time, we will see bigger pumps of BTC and ALTs. Soon we should enter in a stage in the market we call ALT season where we will see MANA pump! Market conditions will be very volatile during the month of April and there is a lot of economic news, so please do your own due diligence. This is not trading advice and any actions taken based on this information are solely at the readers discretion. We do not make any guarantees or warranties about the completeness, reliability or accuracy of this information. We encourage readers to do their own research before entering the market. ![](https://storage.googleapis.com/papyrus_images/1c14836ba8330bf392959d5bd8f327d42bfc1ea87c8d26bcabadaf15ff920e1e.png) --- *Originally published on [3HOUSE](https://paragraph.com/@3house/nfa-decentraland-analysis-mana)*