Popular metaverse coin projects Decentraland (MANA) and The Sandbox (SAND) could face significant losses as support weakens, according to analysts. MANA and SAND fell last week.
“Popular metaverse coin projects stand at critical threshold”
Analysts state that while SAND maintains support, MANA appears to have breached critical support, and if the bulls do not step in, both metaverse coin projects are facing another drop. He says he can face it.
Also, a correction may be needed as the global cryptocurrency market cap drops below $2 trillion, according to analysts Decentraland and The Sandbox. Analysts state that both tokens are trading with weak support as selling pressure builds. We have prepared the analysis of these two important metaverse coin projects by the analysts for the readers of Kriptokoin.com.
“Decentraland breaches vital support”
Decentraland appears to be tied to significant losses after failing to overcome critical resistance. The MANA token of the Metaverse game has dropped more than 23% in the past week. The drop comes after MANA was rejected from the upper boundary of a parallel channel where its price has been holding since early November 2021. Now that Decentraland has surpassed the $2.25 support level, a steeper decline is possible.
Price history shows that MANA tends to retrace to the middle or lower trendline of the channel when the pattern rejects the upper edge. A similar price action could lead to a 19% correction to $1.71. However, if this support fails to hold, MANA could decline further towards $1.21.
It is worth noting that an increase above $2.78 may invalidate the pessimistic view. Crossing the key resistance area may encourage marginal traders to re-enter the market. Under such unique circumstances, MANA could have the strength to rally to $3.75.
“Sandbox hangs by cotton thread”
The sandbox rests above a critical support area that the bulls must defend to avoid further losses. SAND lost 0.84 points in market capitalization last week. The sudden correction pushed the Metaverse token into the X-axis of a descending triangle it has been in since mid-November 2021. Sandbox must now hold this level as support to avoid a fix.
The height of the triangle’s Y-axis predicts that a decisive daily candlestick closing below $2.56 could trigger an almost 68% pullback. Such a significant sell-off could cause SAND to find support at $0.77.
A push above $3.30 could invalidate SAND’s bearish thesis. A sustained daily close above this resistance level could push the Metaverse token towards $5.37 triggering a breakout.
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