As altcoins experience a bullish trend, Ethereum’s recent gains against Bitcoin hint at the possibility of an upcoming altcoin season. In the midst of this rally, Metaverse tokens like GALA and MANA are beginning to show signs of recovery, sparking speculation of a potential trend reversal. Could these tokens surge in the coming weeks? Let’s take a closer look.
GALA’s Potential Breakout Amidst Supply Resistance
GALA, a popular Metaverse altcoin, has faced a significant downturn over the past six months, dropping in value by 80%. The token’s price action has been weighed down by a persistent resistance trendline, but recent developments suggest that a comeback may be on the horizon.
At present, GALA is consolidating near the $0.015 psychological support level, signaling a potential reversal. Key technical indicators, such as the bullish divergence in the RSI line and the potential bullish crossover in the VI lines, suggest that a breakout rally could be imminent.
Should GALA break through the long-standing resistance trendline, it could challenge the 23.60% Fibonacci retracement level at $0.031. A successful breakout here could pave the way for further gains, potentially propelling GALA to the 50% Fibonacci level at $0.050. If momentum continues, a rally to the 1.618 Fibonacci level at $0.12 could follow, increasing the likelihood of GALA surpassing the $0.10 psychological resistance level in 2024.
Decentraland’s MANA Eyes a Wedge Breakout
MANA, the native token of Decentraland, is also showing signs of a potential trend reversal. Like GALA, MANA has been in a bearish pattern, with its price dropping 66% over the last six months. However, the token has found support near the $0.25 level, and recent price consolidation hints at the possibility of a breakout.
The RSI shows a bullish divergence, and the convergence of the VI lines suggests that a bullish crossover may be on the horizon. If MANA manages to break through the overhead resistance, it could challenge the 23.60% Fibonacci level at $0.3774.
Further gains could see MANA targeting the 50% Fibonacci level at $0.51, with a potential rally to the 1.618 Fibonacci level at $1.10. Should MANA break past these critical resistance levels, the likelihood of the token surpassing the $1.00 psychological mark by 2024 becomes increasingly probable.
Conclusion: Will Metaverse Altcoins Rebound?
While GALA and MANA have struggled throughout 2023, recent technical signals suggest that a comeback could be on the cards. Both tokens are approaching critical resistance levels, and if they manage to break through, substantial gains may follow. The bullish divergences in key indicators further support the potential for a trend reversal, raising the possibility of a resurgence for Metaverse altcoins by late 2024. However, the success of these tokens will largely depend on market conditions and their ability to sustain upward momentum in the months ahead.
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