The Metaverse has been one of the top trending topics of 2021, after Mark Zuckerberg‘s announcement that Facebook would be renamed Meta. This trend powered a buying surge in Metaverse tokens and resulted in massive returns for investors in 2021.
Regardless, with the starting of 2022, the bears extended the correction phase into a downtrend resulting in a long-term resistance trendline evident in most of the Metaverse tokens price action.
Nevertheless, the recent spike in buying pressure observed on March 16th resulted in trendline breakouts of most Metaverse tokens. However, the surge edged into a consolidation range, reflecting a cool-off in buying pressure. But is this consolidation a breakout retest, or is a reversal in order?
Let’s check out these three Metaverse tokens, you should watch closely.
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SandBox (SAND)
The recent recovery has resulted in the breakout of the psychological barrier at $3, the long-coming resistance trendline, and the 200-day EMA. The price jump accounts for a 20% surge, but the market price remains about 55% away from its all-time high. However, the price action struggles to sustain above the $3 mark and the 200-day EMA. In addition, the selling pressure near the 50-day EMA influences bearishness on the consolidation, and the falling trend indicates high chances of a death cross.
The MACD and RSI indicators reflect a boom in the underlying buying pressure as the RSI slope surpasses the halfway mark, and the MACD and signal lines regain the bullish alignment.
In conclusion, the retracement maintains a retest vibe and keeps the possibility of a reversal alive. However, the bullish theory will nullify if the price succumbs below the broken trendline.
2. Gala Games (GALA)
The GALA coin price gives a bullish triangle breakout in the daily chart but struggles to rise above the 50-day EMA and the psychological barrier of $0.25. However, the retracement comes after the 20% surge experienced in the last 96 hours. Hence, the chances of the retracement coming as the triangle breakout is significantly high. Nonetheless, the bullish rally must surpass the 50-day EMA for the breakout rally to withstand the underlying bearishness.
Taking a technical view, the RSI and MACD indicators show the bulls are slowly gaining momentum as the MACD histograms turn bullish, with the RSI slope maintaining an uptrend with the 14-day SMA.
In a nutshell, buyers can find a profitable buying sport near the solid psychological support of $0.20.
3. Decentraland (MANA)
MANA coin price remains under the bearish influence of the long-coming resistance trendline and the 50-day EMA. However, the support of the 200-day EMA and the newly generated support trendline form a triangle pattern. The lower low price pattern remains trapped within this triangle pattern, but the surge in a single meta token has the habit of increasing buying around the meta sector. Hence, a post-retest reversal in either of the coins mentioned above can result in the bullish triangle breakout for the MANA coin.
The RSI indicator shows a boom in the underlying bullishness as the slope surpasses the 50% mark. Furthermore, the MACD indicator shows a new bullish crossover with the positive trend of MACD histograms gaining momentum.
In short, the MANA coin price remains within a price pattern, and the fallout of the support trendline or the 200-day EMA will void the bullish theory.
However, a breakout or a post-retest reversal in the mentioned coins can bring a price jump of 25-40% which is possible as a long-term correction phase ends.
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