Metaverse mania? APE and MANA rally, but sustaining it will depend on…
- APE and MANA’s prices have appreciated over the last 24 hours
- However, price chart assessments of both tokens suggested the rally might be short-lived
Sharing a statistically significant positive correlation with Bitcoin [BTC], the rally in the king coin’s price due to Federal regulators’ decision to restore all deposits at Silicon Valley Bank (SVB) has resulted in price gains for Metaverse tokens like Apecoin [APE] and Decentraland [MANA].
In fact, according to CoinMarketCap, APE logged a double-digit rally of 14% in the last 24 hours. This, while MANA recorded a 9% hike over the same period.
While many traders have taken advantage of the price rallies to cash in profit, a price chart assessment of both tokens hinted at a price drawdown. Especially if buyers fail to sustain their momentum as the week progresses.
APE in your gains now, before MANA stops falling
APE was trading at $4.41, at press time. While the token’s value surged over the last 24 hours, mirroring the market’s generally bullish trend, its set-up on the daily chart revealed that sellers have remained effectively in control.
A look at the crypto-asset’s Directional Movement Index (DMI) seemed to confirm this. At press time, the Negative Directional Indicator line (red) at 25.98 was positioned above the Positive Directional Indicator line (green) at 16.24. This meant that the sellers’ strength exceeded that of the buyers as selling pressure overwhelmed buying momentum.
Read Apecoin’s [APE] Price Prediction 2023-24
Also, the altcoin’s Average Directional Movement Index line (yellow) pegged in an uptrend at 27. This suggested that selling pressure has been very strong. And, it may be challenging for buyers to reverse it in the interim.
Furthermore, with greater distribution underway, APE’s key momentum indicators revealed that the altcoin was inching closer to being oversold. At press time, the RSI and MFI were spotted at 41.60 and 31.85, respectively, suggesting that buying pressure had dwindled.
Once the hype surrounding the SVB customer deposits protection dies down, APE’s price is expected to fall further. Especially if new demand fails to enter the market.
Toeing a similar pattern, MANA was significantly oversold at press time. Its price touched the lower band of the Bollinger Bands, indicating that sellers increasingly let go of their MANA holdings.
While this could also mean that a price correction was underway, the positions of MANA’s RSI and MFI did not support that postulation. In fact, at the time of writing, they were both on downtrends at 41 and 38, respectively.
Read Decentraland [MANA] Price Prediction 2023-24
Finally, MANA’s Aroon Down Line (blue) at 78.57% suggested that the downtrend was strong. It also implied that it might take a while for the bulls to re-emerge.