Decentraland price has been falling inside a descending parallel channel since February 2nd. These channels usually contain corrective movements, which means expecting an upward breakout.
On April 1, the price of the MANA token broke out of the channel. This successfully breached the RSI from the bearish divergence trend line (green line). However, the price failed to move above the $0.61 resistance area. Doing so is required for the trend to be considered up.
Although the daily RSI did not move above the 50 level, the completed ABC correction (black) inside the channel indicates that a breakout from the $0.61 area is more likely than rejection. In this case, the price of MANA could rise to $0.82.
However, if rejection occurs instead, a drop to the $0.50 support could follow.
Technical analysis from the daily timeframe shows that Sandbox price has been rising since March 11, when it bounced at the $0.53 horizontal support area (green icon). Shortly thereafter, the daily RSI broke out from the bearish divergence trend line (green line). This is a sign that often precedes a price breakout.
As expected, SAND price broke out from the descending resistance line on April 4th. However, despite the breakout, the rapid part of the rally has yet to begin.
If the upward move continues, there will be a strong resistance at $0.69. This is the final resistance area before the $0.84 rally. However, if the rally loses momentum, the SAND token price could drop to the descending resistance line and possibly drop to the $0.53 horizontal support area.
Similar to the MANA, the daily RSI is just above 50, which is a sign of an indefinite trend. However, the completed ABC correction and breakout from the resistance line makes the breakout a bit more likely.
In conclusion, the trend of SAND and MANA prices is bullish, and an increase is expected in April. Rejection from the nearest resistance areas may invalidate these bullish expectations and lead to a sharp decline.
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Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
