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

2 mins
3 January 2023, 11:45 GMT+0000
Updated by Geraint Price
3 January 2023, 11:45 GMT+0000
In Brief
  • MANA is following a descending resistance line.
  • SAND broke out from a descending resistance line.
  • Both have generated bullish divergence.
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The Decentraland (MANA) price short-term price prediction is leaning bullish due to a bullish signal in the RSI. The Sandbox (SAND) short-term price prediction is more decisively bullish due to the breakout from a descending resistance line.

Decentraland Short-Term Price Prediction – Breakout Incoming?

The price of Decentraland has decreased underneath a descending resistance line since Dec. 5. The downward movement led to a minimum price of $0.284 on Dec. 30. The MANA price has been moving upward since but has not broken out from the resistance line.

Despite the failure to break out, technical analysis indicators are bullish. This is clearly visible in the RSI, which has generated considerable bullish divergence (green line) Such divergences often precede upward movements.

If this is the case, the Decentraland price will be expected to break out from the resistance line and increase toward the 0.5-0.618 Fib retracement resistance levels at an average price between $0.355 – $0.373.

However, it is worth mentioning that Grayscale holds 1% of the total market cap of MANA. If the first is forced to liquidate some of its holdings, this could have a negative effect on the MANA token price. Therefore, a rejection from the resistance line could send MANA back below $0.30.

A decrease below the Dec. 30 low of $0.284 would indicate that the trend is still bearish.

Decentraland (MANA) Short-Term Price Prediction
MANA/USDT Six-Hour Chart. Source: TradingView

SAND Price Could Increase by 50%

The SAND price has decreased below a long-term descending resistance line since reaching a maximum price of $0.985 on Nov. 5. The downward movement led to a low of $0.375 on Jan. 1.

Despite the drop, several bullish signs indicate that a relief rally is expected.

Firstly, the SAND price has just broken out from the descending resistance line, signaling that the downward movement could be complete.

Secondly, the six-hour RSI has generated a considerable amount of bullish divergence. Moreover, it has now moved above the 50 line.

The previous time such a divergence occurred (green, dashed), the SAND token price increased by 23%. These are signs that an upward movement toward the 0.382-0.5 Fib retracement resistance levels at $0.608 – $0.681 is expected. A fall below the Jan. 1 low of $0.375 (red line) would invalidate this bullish SAND price analysis.

The Sandbox (SAND) Short-Term Price Prediction
SAND/USDT Six-Hour Chart. Source: TradingView

To conclude, the SAND and Decentraland short-term price predictions are both bullish. However, the outlook is slightly more favorable for SAND because it has already broken out from its descending resistance line. A drop between the Jan. 1 lows would invalidate the bullish price forecast for these digital assets.

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