The Metaverse has experienced subdued interest since its peak in 2021, causing cryptocurrencies related to it to experience sharp falls. However, these three cryptocurrencies have interesting formations that could lead to future price increases.
Axie Infinity (AXS) and the Sandbox (SAND) have both created bullish patterns, a sign that an upward movement could soon follow. While Decentraland (MANA) has not created a bullish pattern, its price action also indicates a potential reversal.
The AXS price has fallen under a descending resistance line since the end of January. Since the line has been in place for such a long time, the trend is considered bearish as long as the price trades below it.
However, over the past two weeks, the AXS price created a double bottom, which is considered a bullish pattern. Therefore, an upward movement is likely to follow it.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold, and to determine whether to accumulate or sell an asset. I
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
While the current RSI is slightly below 50, it has generated a significant bullish divergence (green line) and is increasing, both signs of a bullish trend. As a result, a breakout from the line is the most likely scenario.
If the AXS price breaks out, it could increase to the closest resistance at $9.40. However, despite this bullish price prediction, a close below the May lows of $6.48 will mean the trend is still bearish. In that case, the AXS price could fall to $4.50.
Decentraland (MANA) Price Attempts to Clear Resistance
Similarly to AXS, the MANA price has fallen under a descending resistance line since the beginning of February. More recently, the line caused a rejection on April 18 (red icon). This caused the price to fall below the $0.50 horizontal area in May.
While the price has bounced since it was rejected by the area once more on May 16 (black icon).
Whether the price reclaims the $0.50 resistance area or gets rejected again could determine the future trend.
If it reclaims it, an increase to the resistance line at $0.57 will be the most likely scenario. However, if the price gets rejected, it could fall to the closest support at $0.42.
The Sandbox (SAND) Price Reclaims Horizontal Resistance
In a similar fashion to AXS, the SAND price has also created a double bottom pattern since May 10. The pattern was combined with a bullish divergence in the RSI, increasing its legitimacy.
Moreover, the price reclaimed the $0.52 area after previously falling below it. This is also considered a bullish sign.
But, the price failed to break out from its descending resistance line. Nevertheless, it is now making another breakout attempt.
If it is successful, SAND could increase to $0.70. However, if the Metaverse token closes below $0.52, a significant drop to $0.40 could ensue.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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