A bullish signal in the RSI points towards a bullish short-term price prediction for Decentraland (MANA). Sandbox (SAND) prices have broken out of a descending resistance line in the short term, further strengthening the bullish argument.
Predictions for Decentraland’s (MANA) short-term price – Is a breakout imminent?
Decentraland’s price has decreased under a descending resistance line since Dec. 5. On Dec. 30, the price reached a minimum of $0.284. Since then, MANA prices have been rising but have not broken through the resistance level.
Technical analysis indicators remain bullish despite the failure to break out. There is a clear bullish divergence in the RSI, which may signify an upward trend (green line). Divergences like these usually precede upward movements.
In this scenario, we can expect the Decentraland price to surpass the resistance line at an average price between $0.355 and $0.373 and increase toward the resistance levels at 0.5-0.618 Fib retracement.
It is worth noting, however, that Grayscale holds 1% of MANA’s total market capitalization. The price of MANA tokens could be negatively affected if they are forced to liquidate some of their holdings.
MANA could fall below $0.30 if the resistance line is rejected.
There is still a bearish trend if the trend decreases below the low of $0.284 on Dec. 30.
The price of SAND could increase by 50%
After reaching an all-time high of $0.985 on Nov. 5, SAND has declined below a long-term descending resistance line. A low of $0.375 was reached on January 1 due to the downward movement.
Several bullish signs are pointing to a relief rally despite the drop.
First, the SAND price has broken below the descending resistance line, indicating that the downward movement may have ended.
Also, the six-hour RSI has exhibited considerable divergence in the bullish direction. Furthermore, it has now crossed the 50-point mark.
Previously, when such a divergence occurred (green, dashed), SAND token prices increased by 23%. The price will likely increase towards the 0.382-0.5 Fib retracement resistance levels at $0.608 – $0.681. This bullish SAND price analysis would be invalidated if the price fell below the Jan. 1 low of $0.375 (red line).
As a result, both SAND and Decentraland’s (MANA) short-term price predictions are bullish. Although SAND has already broken out of its descending resistance line, the outlook for it is slightly more favorable. The bullish price forecast for these digital assets will be invalidated if they drop below the Jan. 1 lows.
Please note that this price analysis first appeared on BeInCrypto.com