Metaverse coins are no longer as popular as they used to be. In nearly a year, we’ve seen very few breakthroughs in this space, aside from Meta’s new VR glasses. The market repercussion of the drop in demand followed losses in the crypto market’s largest metaverse projects of over 90%. In this article, let’s take a look at two metaverse coins that technical indicators have given the green light.
Metaverse coins giving a bullish signal
The first example is Decentraland (MANA) gaining upward momentum accompanied by a bullish signal on the RSI. MANA price has been falling below a descending resistance line since Dec. The downside move found a bottom in the $0.284 region on December 30. MANA has been moving upwards since then, but has not left the resistance line.
Despite the failure to break the resistance, technical indicators are bullish. This interpretation can clearly be made with the RSI forming a significant bullish divergence (green line). Such divergences often precede upward moves. If this is the case, technical analyst Valdrin Tahiri expects Decentraland price to break out of the resistance line and average higher to the $0.355-$0.373 region.
However, it is worth noting that Grayscale holds 1% of MANA’s total market capitalization. As Kriptokoin.com, we have included the details of the reserves in this article. If he has to sell some of them, it could have a negative impact on MANA. Therefore, a rejection from the resistance line could send MANA back below $0.30. On the other hand, a drop below the December 30 low of $0.284 will indicate that the trend is still bearish.
SAND price points to 50 percent potential rise
SAND price has been declining below the long-term descending resistance line since it peaked at $0.985 on Nov. The downside move found a bottom at $0.375 on Jan. Despite the drop, a few bullish signs suggest a relief rally is expected;
- First, SAND price just broke out of the descending resistance line, signaling that the downside move may be complete.
- Second, the six-hour RSI has formed a significant bullish divergence. Moreover, it is now above the 50 line.
Earlier when such a divergence occurred (green, dashed), the SAND token price had risen by 23%. These are signs that an upside move to the $0.608-$0.681 resistance levels is expected. However, a drop below the January 1 low of $0.375 (red line) will invalidate this bullish SAND price analysis.
As a result, both SAND and Decentraland short-term price forecasts are bullish. The outlook, however, is a little more favorable to SAND. Because it has already managed to break out of the descending resistance line. A dip between January 1 lows will invalidate the bullish price prediction for these metaverse coins.
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