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Metaverse: Decentraland (MANA) and Sandbox (SAND) Price Face Immediate Trouble

Metaverse: Decentraland (MANA) and Sandbox (SAND) Price Face Immediate Trouble

Metaverse: Decentraland (MANA) and Sandbox (SAND) Price Face Immediate Trouble

Decentraland (MANA) price is showing bullish signs on the weekly time frame, but the daily chart is suggesting that further declines are likely before a reversal occurs.

Meanwhile, The Sandbox (SAND) price has a bearish outlook for both the long and short term. -Long-term periods. It has broken a horizontal support area and is threatening to drop below its yearly lows. This could greatly speed up the rate of decline.

MANA price breaks down below 17-month support

MANA’s price has been falling within a descending parallel channel since hitting an all-time high of $5.91 in May 2021. The down move so far has led to a low of $0.62 in May 2022. At first it appeared that the downtrend movement caused a breakout above the channel support line.

However, the price of MANA soon reversed trend creating a very long lower wick (green icon). Since these channels usually contain corrective moves, an eventual breakout would be the most likely scenario. This possibility is further enhanced by the fact that Decentraland price is trading at the top of the channel and bullish divergence is present on the weekly RSI (green line). Previously supported since August, 2021.

Furthermore, the bullish divergence trend line has now been broken on the daily RSI timeframe. This suggests that the downward movement in Decentraland’s price is likely to continue towards the nearest support area at $0.49. Therefore, the combination of the weekly and daily timeframe values ​​shows the price of MANA falling towards $0.49 could occur before an eventual break.

SAND price faces a move downward

The daily time frame for The Sandbox price shows that on September 22 the price started an upward move breaking a descending resistance line. The upward move was preceded by a bullish divergence on the daily RSI. However, it failed to hold and SAND price has fallen below pre-breakout levels. Like MANA price, the bullish divergence trend line has been broken on the daily RSI (green line).

Additionally, the price of SAND has broken below the $0.83 horizontal support area previously in place since the June lows mentioned above. Therefore, further declines are expected on the daily time frame. As part of the bullish move, the next support area for SAND price is $0.55 created by the 1.

MANA price has higher return potential than SAND price

Based on the price action and readings of technical indicators, SAND and MANA prices are expected to fall in the near future. However, the long-term outlook for MANA price remains bullish, while that of SAND price is trending down.

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