Why Are Decentraland (MANA) and Sandbox (SAND) Prices Pumping? Tokens Could Dip Over 60% Again
The price of Sandbox (SAND) is up more than 25% in the past 24 hours, following a strongly bullish week.
The bullish move was steady but accompanied by low volume when it started on November 5. However, the price was able to break above a 30-month-old descending trendline that has been acting as resistance since May 2022.
As the price approached the top of the descending trendline again, bulls saw it as an opportunity to break above it. This successful break ushered in more buying pressure, which helped sustain a strong bullish close yesterday.
Although the price has reached a level higher than Sunday’s closing price, it is currently retracing as it looks for support and liquidity before the upward move continues.
A closer look at the chart shows that the SAND price also closed below a resistance level on the weekly chart; this resistance has previously triggered double-digit declines.
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If many traders take profits at this point, we might see another decline. Breaking this resistance is crucial for the price of SAND to continue its upward trajectory.
Decentraland’s MANA Following the Same Trajectory
Decentraland (MANA) is exhibiting a similar price pattern as SAND. The price has been bullish and it had a strong bullish close after breaking above the descending trendline. It currently testing that trendline.
If it holds, we expect the MANA price to continue rising. However, like SAND, there is one barrier—a strong resistance level that has also caused a double-digit dip.
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The first time the price reached this level was in January, resulting in a dip of more than 60%. The same level triggered an over 70% dip again in March. This resistance must be overcome before the MANA price can increase further. If this happens, a major rally could begin.
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