Metaverse Can’t Resist Selling Pressure With Axie Infinity and Sandbox Ready to Drop Up to 20%


Cryptocurrencies aimed at the metaverse ecosystem are not strong enough to resist the selling pressure that has been hitting the entire cryptocurrency market and could drop more than 20%, with two of the largest Axie Infinity metaverse tokens (AXS) and The Sandbox (SAND) leading the way down.

This is the analysts opinion Jonathan Morgan and Akash Girimath, both of FXStreet, what point out in a recent analysis that the charts are not favorable for metaverse tokens.

According to Morgan, in the case of AXS, the crypto asset is at a standstill in relation to the daily Tenkan-Sen, generating a new lower high and setting Axie towards another low.

“Axie Infinity’s price has jumped a good 22% from Monday’s lows, but sellers have entered Tenkan-Sen and thus have prevented AXS from moving above Tenkan-Sen. As a result, there are more bearish warning signs within the oscillators,” he said.

He points out that the Relative Strength Index (RSI) remains in bearish market conditions, with the first oversold level at 30 and the second oversold level at 20. Furthermore, he highlights that there is bearish divergence between the candles and the Composite Index. The Composite Index printed higher highs, but the candlestick chart printed lower highs.

Daily Chart AXS/USDT Ichimoku Kinko Hyo

“The combination of the rejection against the Tenkan-Sen and the hidden bearish divergence with the Composite Index provides significant weight to a short-term bearish bias. Sellers can push the Axie Infinity price into a shared support zone between the 100% Fibonacci extension at $60 and the Volume Point Of Control at $67,” he said.

Also according to him, if the bulls want to deny any lower move first they will need to push for a close slightly above Tenkan-Sen at $80. After that, a close above Kijun-Sen, currently at $90.

“The ideal setup for Axie Infinity to display a clear and undeniable uptrend is a close-up above the cloud with the Chikou Span in open space. The earliest this can occur is at $127, not an insignificant move that would need to occur.” , ends.

The Sandbox

Girimath points out that the price of SAND is seeing a slight deceleration after its recent uptrend.

“The sandbox price is up 20%, creating a demand zone, ranging from $4.21 to $4.77. Investors can expect the SAND to retrace lower after this rise and, in some cases, the pullback. can retest the aforementioned demand zone,” he said.

He points out that a four-hour candlestick closing below $4.21 will create a lower low, invalidating the bullish thesis for the SAND. This move could pave the way for the Sandbox price to drop and retest the $4.08 support level where buyers can attempt another comeback.

“If selling pressure remains high, SAND could revisit the $3.88 position,” he said.

However, he also points out that the token could reverse the trend and start another rally if it breaks the $5.52 resistance, constituting a 15% rally from $4.77.

“With this, it is likely that the price of Sandbox will extend beyond this level and mark the psychological level of $6. In total, this increase would represent a gain of 25% and it is likely that the SAND will form a local top”, he concludes.

4-hour SAND/USDT chart

4-hour SAND/USDT chart

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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