cryptobriefing.com
Decentraland and The Sandbox are soaring as interest in the Metaverse continues to grow. As the crypto market rebounds from its latest dip, MANA and SAND both look poised for further gains.
Decentraland, The Sandbox Post Rally
Decentraland and The Sandbox are experiencing a significant bullish impulse.
MANA is up 7.6% today, while SAND has risen 5.7%. The two assets are enjoying an uptick as the market looks to recover from its recent downturn.
Despite volatility in the market, both Decentraland and The Sandbox have benefited from growing attention on the Metaverse since Facebook announced its rebrand to Meta. While many tokens like MANA and SAND have soared since the announcement, institutional players like Grayscale have expressed their belief in the future of the Metaverse. More recently, Goldman Sachs published a report affirming its view that the Metaverse could evolve into a multi-trillion-dollar market.
Eric Sheridan, a Managing Director at Goldman Sachs, noted that he thinks the virtual economy will continue to grow alongside the digital economy, which currently represents roughly 25% of the global economy. He explained:
“We came up with the number for various outcomes of anywhere from $2 trillion to $12 trillion, with $8 trillion at the midpoint of all potential outcomes [for the Metaverse].”
Sheridan’s remarks appear to have been welcomed by investors as the leading Metaverse tokens in the cryptocurrency market are rising fast. Decentraland, The Sandbox, Enjin Coin, and Axie Infinity have all jumped over the last 24 hours. Now, Decentraland and The Sandbox look set to continue their upward moves.
The Tom DeMark (TD) Sequential indicator currently presents a buy signal on both MANA and SAND’s three-day charts. The bullish formation developed as a red nine candlestick, which is indicative of a one to four three-day candlesticks upswing or the beginning of a new upward countdown.
Still, transaction history shows that Decentraland and The Sandbox face significant resistance ahead.
Nearly 7,000 addresses are holding approximately 36 million MANA at an average price of $2.60. This has created a significant supply barrier, which could have the ability to absorb some upward pressure. Decentraland would have to break through this barrier to approach $3. If it fails to do so, it may experience a pullback to $2.
Likewise, Sandbox needs to print a three-day candlestick close above the $3.50 resistance level to validate the bullish outlook. Slicing through this hurdle could generate enough momentum to push prices to $4. However, if it struggles to break the $3.50 wall, SAND could retrace to $3.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.