Decentraland, The Sandbox Tokens May Dip Below $1 Again
Decentraland and The Sandbox could suffer another correction to collect the liquidity needed for a new uptrend to begin.
Key Takeaways
- Decentraland has risen by more than 128% since May 12.
- Meanwhile, The Sandbox saw its price increase by 60%.
- MANA and SAND remain on shaky grounds despite the recent gains.Â
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Decentraland and The Sandbox have recovered from the downswing seen on May 12. Still, these tokens have yet to collect enough liquidity to advance toward higher highs.
Decentraland and The Sandbox Look Weak
Metaverse tokens MANA and SAND look primed for another downswing as trading volumes dry up.
Decentraland has enjoyed a significant rebound after printing a low of $0.6 on May 12. Since then, MANA surged more than 128% to reclaim the psychological $1 support level and recently hit a high of $1.37. Despite the impressive price action, it appears the token lacks the buying pressure to advance further.
MANA has reached the bearish target presented by a descending triangle that has developed on its three-day chart. But given the current market conditions, Decentraland could revisit the recent lows at $0.6 before collecting enough liquidity to advance further.
A sustained three-day close below the $1 support level can serve as confirmation of the pessimistic outlook.
The Sandbox also looks like it could dip below $1 again. Although SAND surged by nearly 60% after hitting a low of $0.96 on May 12, it has yet to meet the bearish target presented by a descending triangle that developed on its three-day chart.
Further selling pressure could see the Metaverse token slice through the $1.12 support level to reach $0.70.
It is worth noting that a spike in buying pressure around the current price levels could help Decentraland and The Sandbox invalidate the pessimistic outlook. MANA would have to claim $1.48 as support to encourage sidelined investors to reenter the market and push its price to $2. Meanwhile, SAND would have to slice through the $1.80 resistance level to surge toward $3.26.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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