Are Gaming Tokens Poised for a Revival? | Credit: Hameem Sarwar
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Key Takeaways
Gaming and Metaverse tokens rebounded in the past three days.
The Sandbox (SAND) broke out from a resistance trend line.
Decentraland (MANA) trades inside a long-term channel.
Gaming tokens have not performed well in the current cycle. While they were briefly the best-performing category in March, they have struggled considerably since, with most tokens falling to new all-time lows.
However, this all changed last week when the SAND and MANA prices started parabolic rallies and more than doubled. SAND even reached a new yearly high.
So, the question on everyone’s mind is: Will gaming tokens finally come back, and will SAND and MANA lead their resurgence?
A basket created by the six biggest gaming and metaverse tokens has increased considerably since November. The increase was especially sharp during the past three days as the price broke out from a critical resistance at $1.50.
The price reached a high of $2.17, reaching the $2.25 horizontal resistance area. Technical indicators are bullish, as seen by the increase in the Relative Strength Index (RSI) above 50 and that of the Moving Average Convergence/Divergence (MACD) above 0.
From this basket, the biggest gainer in the past three days is The Sandbox (SAND), followed closely by Decentraland (MANA). Let’s look at their price movements to see where they can go next.
SAND Price Breaks Out
The weekly time frame SAND chart shows that the price broke out from a long-term descending resistance trend line last week. Before the breakout, the trend line had existed for 826 days.
So, its breakout is a sign that the previous long-term bearish trend has ended and a bullish trend reversal has begun.
On Nov. 25, the SAND price reached a new yearly high of $0.87 before falling slightly. Nevertheless, the price trades above its long-term descending resistance trend line.
If SAND breaks out from the $0.80 horizontal resistance area, it can increase 65% to the next long-term resistance at $1.30.
Technical indicators support the bullish outlook. The RSI and MACD have both generated bullish divergences before the upward movement (green) and are now above their bullish thresholds at 0 and 50, respectively.
So, the long-term SAND prediction is bullish, and a breakout above $0.80 is likely.
MANA Reaches Resistance
The weekly time frame MANA chart shows that, unlike the SAND price, MANA has not broken out from its 700-day pattern. In Decentraland’s case, it is a descending parallel channel instead of a descending resistance trend line.
Last week’s increase took the price to the channel’s resistance but did not cause a breakout. If one happens, the first resistance will be at $1.10. However, this is just a minor resistance area. A breakout could take MANA to the next resistance at $2.40, both a horizontal and Fibonacci level.
Technical indicators support the upward movement. The RSI and MACD have generated bullish divergences (green) and are above their bullish thresholds at 50 and 0, respectively.
So, similarly to SAND, the MANA price will likely break out and increase toward its long-term resistance.
Gaming Recovery Underway
The SAND and MANA price predictions are both bullish. While MANA has yet to break out from its long-term resistance trend line, it will likely do so soon. Over 100% increases could await both. On a macro level, gaming tokens are poised for a comeback.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
