Pay Attention to Decentraland Now As It Starts to Strutt Its Stuff

Looking to flee the day-to-day? Among other things the metaverse promises to take escapism to the next level. Closer to home though, if investors want to profit from this brave new digital world, Decentraland’s (CCC:MANA-USD) MANA coin is shaping up with that reality right here, right now. Let me explain.

Decentraland logo displayed on smartphone screen, teal background behind the phone

Source: Swat

Unheard of raging fires and tornados in the middle of winter. The impact of climate change is continuing to nastily evolve as people in states like Colorado and Kentucky have painfully witnessed in recent days.

And for many others across the globe there’s an unrelenting variant of covid-19 — omicron — that’s continuing to wreak widespread havoc.

Happy New Year? To say the least, that’s still to be determined with the odds seemingly stacked against it.

Given the state of the planet, the rise of the metaverse — the next level of escapism — can’t come quick enough, right? The company formerly known as Facebook, now called Meta Platforms (NASDAQ:FB), certainly appears to see that very writing on the wall.

A Quick Look At the Rise of Decentraland

But for those wanting to get in the digital promise of the Web 3.0 as a thematic investment, Decentraland is breaking new ground in the metaverse as well.

In a nutshell, Decentraland is a virtual reality platform powered by the Ethereum (CCC:ETH-USD) blockchain. That’s where users can “buy plots of land, develop them, and reap the rewards” in MANA token.

No doubt a new class of millionaires, when of course those digital coins are converted back into real world Benjamins, will be unleashed.

Supportive of that very fact, one plot of real estate inside Decentraland’s metaverse already sold for a record $2.43 million.

And the reason for the cash outlay? In a perfect or digital world, the goal is for the purchase to become the new catwalk of choice in the high stakes fashion industry.

Still, if you’re not a digital land developer and consider yourself more of an investor wanting to get in on this ground floor opportunity, you could consider a Decentraland coin purchase, which is technically strutting its stuff on the MANA price chart today.

How to Interpret Decentraland’s Weekly Price Chart

Decentraland (MANA-USD) trying to bottom out of corrective market cycle into solid-looking support
Source: Charts by TradingView

The metaverse may not be entirely bound by the laws of physics or immune to what’s happening around it here on planet earth. I get it, I think? Yet when investing in risk assets like MANA coin inside your trading account, technical rules to guide one into a smarter position do work consistently enough as to use them to your advantage.

And today, Decentraland’s price action could be close to finishing a constructive bottom for intermediate-term investors following a multi-week corrective move off all-time-highs.

Technically and as the weekly view of the coin reveals, MANA has pulled back into a testing position of Fibonacci and uptrend support.

An idealized doji candlestick bottom that formed a few weeks back failed to be confirmed and the subsequent price action has mostly worked its way into lateral price congestion. The first attempt at bottoming was a “no harm, no foul” situation as Decentraland never traded through the doji’s high.

A hammer candle did signal less than two weeks later. However, without the backing of a bullish stochastics crossover a purchase of MANA would have been suspect in our estimation.

The good news, as the saying goes, is that time is a great healer of wounds. On that front there’s little doubt Decentraland’s more overzealous bulls have had a bit more time to lick their wounds.

Importantly too, MANA-USD’s stochastics indicator has been neutralized and is now showing signs it’s on the cusp of a bullish crossover.

So tomorrow’s Decentraland’s investors can better avoid boldly going where too many others have already dared and failed. Stick to the chart and monitor the coin for a bullish crossover before owning your own little piece of the metaverse.

On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC