Why could MANA increase by 25%?

• Decentraland price has broken above the downtrend line, signaling a bullish trend ahead.
• On-chain data paints a bullish picture, with MANA’s Exchange Flow balance showing a negative peak and the long-short ratio above one.
• A daily candle close below $0.258 would invalidate the bullish thesis.

Decentraland (MANA) price broke above the downtrend line and traded up 1.5% since Friday to $0.291. In addition, on-chain data supports further price increases as MANA’s exchange flow balance shows negative growth and the long-short ratio remains above one.

Decentraland price is poised to rise after breaking the downtrend line

Decentraland’s price broke out of the downtrend line drawn by connecting multiple mid-March highs on Wednesday and rose 1% on Thursday. At the time of writing, it is still trading up 1.5% at $0.291 on Friday.

If the breakout level of the trendline acts as support around $0.280, its weekly support level, MANA could rise to $0.312 before potentially rising 25% to revisit its July 27 high of 0.351 USD.

The Relative Strength Index (RSI) on the daily chart is trading above its neutral level of 50 and the Awesome Oscillator (AO) is nearing its neutral level of zero. Both indicators need to trade above their respective neutral levels for bullish momentum to be sustained.

MANA/USDT daily chart

Santiment’s exchange flow balance for MANA shows the net flow of tokens into and out of exchange wallets. A positive value indicates more MANA in than out, suggesting selling pressure from investors. A negative value indicates more MANA exited the exchange than entered, indicating less selling pressure from investors.

In the case of MANA, the value fell from 781,450 to -935,390 from Tuesday to Wednesday, coinciding with a 5.6% price increase. This negative change indicates increased buying activity among investors.

During this event, the supply of MANA on exchanges fell by 1% in one day, indicating that investors are moving tokens out of exchanges and holding them in their wallets, further denoting investor confidence in Decentraland.

MANA chart Exchange flow and supply on exchanges

According to Coinglass data, MANA’s binance long-short ratio is 1.94. This report reflects bullish market sentiment, as the number above suggests that more trades are anticipating the asset’s price to rise, reinforcing Decentraland’s bullish outlook.

MANA long-short ratio chart

Despite the bullish thesis signaled by both on-chain data and technical analysis, the outlook will change to the downside if Decentraland’s daily candle closes below the August 17 low of $0.258. This scenario could lead to a 16% crash to retest its low of $0.217 on August 5.