Ethereum-Based Altcoin Flashing Signal That Preceded 610% Rally: Crypto Analytics Firm
Crypto analytics firm Santiment says that virtual reality blockchain Decentraland (MANA) is quietly flashing an on-chain signal that has previously foreshadowed exponential rallies for the altcoin.
According to Santiment, MANA’s profit/loss ratio, which compares the amount of coins sitting at a loss to those at a profit, is sitting at three-year lows.
The last time the profit/loss ratio was at the current level, MANA exploded 610%, as per 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/loss ratio of MANA’s transactions is at its lowest level in three years. Those following six weeks saw its price rise +610%”
At time of writing, the Ethereum-based altcoin is trading for $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 range.
Santiment also has its radar on leading oracle network Chainlink (LINK). According to the firm, LINK’s price movements as of late are being preceded by massive spikes in social media activity.
“Chainlink’s market cap dropped ~5% Friday before bouncing just as the day’s trading (UTC time) closed. Three social dominance spikes appeared for LINK, indicating traders were making moves. The latest occurred just as the price began rising again.”
Looking at Ethereum (ETH), Santiment says that ETH whales and sharks have been pushing down the price over the last five weeks. Based on the firm’s data, Ethereum addresses holding between 100 and one million ETH triggered both the relief rally in August and the correction of last month.
“Ethereum’s shark and whale addresses (holding 100 to 1M ETH) have dropped 3.3 million ETH in just the past five weeks. This equates to about $4.2 billion in dumped coins. The asset’s price vs. Bitcoin has ebbed and flowed based on behavior of these key stakeholders.”
At time of writing, ETH is trading for $1,308, up 1.66% in the last 24 hours.
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Author: Daily Hodl Staff
