Decentraland and Sandbox have recovered from a major drop seen on May 12. Still, the metaverse coin giants just don’t have enough liquidity yet to push higher.
Can Decentraland and Sandbox see $1 again?
The largest metaverse coins by market cap, MANA and SAND, seem poised for another drop as their trading volumes dry up. Decentraland largely rebounded after bottoming at $0.6 on May 12. Since then, MANA has rallied more than 128% to retake the psychological $1 support level and recently reached $1.37. Despite the impressive price action, the metaverse coin appears to lack buying pressure to go further.
MANA hit its bearish target presented by a developing descending triangle on its three-day chart. But given current market conditions, analyst Financial Deli says recent lows of $0.6 could be revisited before collecting enough liquidity to move further. A sustained three-day close below the $1 support level could serve as confirmation of the pessimistic outlook.
Metaverse coin giants lose 1 dollar support
Another metaverse coin threatened with 1 dollar: The Sandbox. Although SAND has rallied nearly 60% after falling to $0.96 on May 12, it has yet to meet the bearish target presented by a developing descending triangle on its three-day chart. Further selling pressure could trigger a drop from the $1.12 support level to $0.70.
It’s worth noting that an increase in buying pressure around current price levels could help Decentraland and Sandbox override the pessimistic outlook. MANA will have to claim $1.48 as support to encourage marginal investors to re-enter the market and raise its price to $2. Meanwhile, SAND will have to break the $1.80 resistance level to continue higher towards $3.26. As
Kriptokoin.com, in a recent report, Morgan Stanley made a Terra (LUNA) analogy about the metaverse and the NFT market. We covered the details in this article.
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