Ethereum-Based Altcoin Flashing Signal That Preceded 610% Rally: Crypto Analysis Firm
Crypto analytics firm Santiment says virtual reality blockchain Decentraland (MANA) is quietly flashing a signal on the chain that has previously heralded exponential rallies for the altcoin.
According to Santiment, MANA’s P/L ratio, which compares the amount of coins with losses to those with profits, is at its lowest level in three years.
The last time the P/L ratio was at today’s level, MANA exploded 610%, according to Santiment’s data.
“Decentraland is a fairly under-the-radar ERC20, non-fungible token (NFT) and virtual reality asset that saw its market cap shrink in 2022.
The profit ratio on MANA’s transactions is at its lowest level in three years. The following six weeks saw prices rise +610%”
At the time of writing, the Ethereum-based altcoin is trading at $0.63, down over 89% from its all-time high of $5.85. A 610% gain for MANA would mean a rally all the way up to the $4.47 area.
Santiment also has its radar on leading oracle network Chainlink (LINK). According to the firm, LINK’s recent price movements have been preceded by massive spikes in social media activity.
“Chainlink’s market capitalization fell ~5% on Friday before rebounding just as today’s trading (UTC time) closed. Three social dominance peaks appeared for LINK, indicating that traders were making moves. The latest happened just as the price started to rise again .”
Looking at Ethereum (ETH), Santiment says ETH whales and sharks have pushed the price down over the past five weeks. Based on the firm’s data, Ethereum addresses with between 100 and one million ETH triggered both the relief rally in August and the correction last month.
“Ethereum’s shark and whale addresses (holding 100 to 1M ETH) have dropped 3.3 million ETH in the last five weeks alone. This equates to around $4.2 billion in dumped coins. The asset’s price vs. Bitcoin has ebbed and flowed based on the behavior of these key stakeholders.”
At the time of writing, ETH is trading at $1,308, up 1.66% in the last 24 hours.
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