Is Now the Time to Buy Metaverse Tokens? MANA and SAND Generate Bullish Signals

Is Now the Time to Buy Metaverse Tokens? MANA and SAND Generate Bullish Signals
  • MANA follows a descending resistance line. 
  • SAND broke out of a descending resistance line.
  • Both have created a bullish divergence.

Decentraland’s price has fallen below a descending resistance line since December. The downside led to a price low of $0.284 on Dec 30. MANA’s price has been increasing since then but has failed to break out of the resistance line. 

Although not breaking, technical analysis indicators are bullish. This is visible on the RSI, which has generated a sizeable bullish divergence (green line). Such variations often precede bullish moves. If that is the case, the Decentraland price is expected to break out of the resistance line and rise towards the 0.5-0.618 Fibonacci retracement resistance levels at an average cost between $0.355 – $0.373. However, it’s worth noting that Grayscale owns 1% of MANA’s total market cap. Should the former be forced to liquidate part of its holdings, this could harm the MANA token price. Therefore, rejecting the resistance line could send MANA back below $0.30.

SAND Price Could Increase by 50%

 SAND price has fallen below a long-term descending resistance line since hitting a price high of $0.985 in November. The move lower led to a low of $0.375 in January. Despite the decline, multiple bullish signs suggest a recovery rally is expected.

First, the SAND price just broke out of the descending resistance line, suggesting that the down move may be complete. Second, the 6-hour RSI has created a significant bullish divergence. Also, it has now moved above the 50 lines. The last time such a divergence occurred (green, dashed), the price of the SAND token rose by 23%. These are signs of an upward movement towards 0.382-0.5 Fibonacci retracement resistance levels expected at $0.608 – $0.681. A drop below January. A low of $0.375 (red line) would invalidate this bullish SAND analysis.

https://s32659.pcdn.co/wp-content/uploads/2023/01/SANDUSDT_2023-01-03_10-27-09_bbbdf.png

Finally, the short-term price predictions for SAND and Decentraland are bullish. However, the outlook for SAND is more benign as it has already surpassed its descending resistance line. A drop between the Jan 1st lows invalidates the bullish price prediction for these digital assets.

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